Even though filing for bankruptcy, there are numerous codes, which

an individual can file beneath. One such chapter is 13, which

permits the debtor to preserve house and pay the debt off

more than time.

The debt is usually paid over a 3 to five year period.

This chapter is typically chosen by those who have a normal

earnings and who do not wish to deal with the new laws of

chapter 7 bankruptcy codes.

Also identified as the wage earners program, chapter 13

bankruptcies allow debtors to spend off element of the debt

they have incurred.

Whilst it is not as excellent as being able to work some thing out

with your creditors and arrange payments individually or

by means of a debt consolidator, it does show some economic

responsibility and the debtors willingness to make up for

their mistakes.

Chapter 13 bankruptcies act as sort of a consolidation loan

in itself. Because the debtor is generating payments on the

owed monies, it does not have such a poor impact on the

credit reports. But the individual does not have direct

make contact with with the creditors and payments are distributed

amongst them.

To be eligible for the Chapter 13 bankruptcy an individual,

even if self-employed must have an unsecured debt of below

$307,675 and secured debts need to be under $922,975.

No debtor might file for chapter 13, or any bankruptcy

chapter throughout the preceding 180 days of a previous

bankruptcy petition was dismisses.

There are charges that ought to be paid also when filing for

bankruptcy, even the chapter 13 code. The courts charge a

$235 case filing fee and a $39 miscellaneous administrative

fee. These charges ought to be paid when filing unless with the

courts permission, it can be paid in installments.

Source: commercial phoenix bankruptcy attorneys