Law Office of Roy D. Cole | (801) 784-3466 | http://ogdenutahbankruptcylawyers.com

Discover more great content here: https://twitter.com/cole_roy

http://www.youtube.com/BankruptcyOgden http://www.pinterest.com/roycolelaw

https://www.facebook.com/LawOfficeofRoyDCole

Knowledge is Power: 3 Facts About Chapter 13 Bankruptcy

The matter of filing for a Chapter 13 bankruptcy is a very complex one. It is

inadvisable to file for Chapter 13 bankruptcy without knowing all the facts. Chapter

13 bankruptcy is not good or bad in and of itself--your personal situation will

determine how helpful it is to you. Get informed by learning three facts about

Chapter 13 bankruptcy you may not have heard before.

#1: There are very important distinctions between Chapter 13 bankruptcy

and Chapter 7 bankruptcy.

Chapter 7 bankruptcy is called the "liquidation" bankruptcy--in order for a court to

discharge your debts, you must allow the court to

sell some of your property. Chapter 7 bankruptcy,

a four-to-six-month process, means one visit to

the local courthouse and about $300 in filing fees.

While Chapter 7 bankruptcy is more popular and

less costly than Chapter 13 bankruptcy, many

prefer Chapter 13 because they do not have to

liquidate any of their property. You must seek

credit counseling through an approved credit agency in order to file Chapter 13.

#2: Chapter 13 bankruptcy is not for everyone.

With Chapter 13 bankruptcy, you must agree to settle some or all of your debts

within three to five years. Many low- to no-income Chapter 13 bankruptcy filers are

turned down by the courts because they can't prove they can keep up with the

payment plan. If your debt is too high, you may also be turned down for Chapter

13 bankruptcy, even if you have a regular income. To complete the Chapter 13

bankruptcy process, you are obligated to settle some of your outstanding accounts

in full.

#3: The Chapter 13 bankruptcy process length depends in part on your

income.

If you made more than the median income for your state in the six months before

you filed for Chapter 13, the court will probably recommend the five-year plan.

Conversely, if you made less than the median income for your state, the court will

Law Office of Roy D. Cole | (801) 784-3466 | http://ogdenutahbankruptcylawyers.com

Discover more great content here: https://twitter.com/cole_roy

http://www.youtube.com/BankruptcyOgden http://www.pinterest.com/roycolelaw

https://www.facebook.com/LawOfficeofRoyDCole

likely recommend the three-year plan. Of course, the amount of your debt matters

as well. When you're done with all your payments, your remaining debts will be

discharged. Lastly, you must successfully complete a course on budgeting.

Contact the Law Office of Roy D. Cole for more information about filing bankruptcy.