1. For those who are considering Chapter 13,
Baltimore Bankruptcy Attorney, Daniel M.
Radebaugh has created some helpful tips. The two
most common types of bankruptcy are Chapter 7
and Chapter 13. With Chapter 7, debts are
discharged and those who file are able to keep a
percentage of their property, which often includes
their home and vehicle. For those who qualify for
Chapter 7, this is the best solution.
Bankruptcy Information
2. With Chapter 13 Bankruptcy some debt may be discharged but
instead of discharging a majority of your debt, the individual in
conjunction with the court develops a payment plan that is overseen
and executed by the court Chapter 13 often includes reduced
payments to creditors, decreased or even negated interest charges
and even a certain amount of the debt being forgiven List of All
Financial Facts In essence, you want to be completely prepared
for your court date
3. The first thing you will need to do according to Baltimore Bankruptcy
Attorney Radebaugh is create a list of those to whom you owe
money That list should include the name of the company or person
and the Bankruptcy Information type of debt, balance and monthly
payment You will also need documentation regarding your income,
home equity and assets
4. By the way, your tax records from the past five years must be in
proper order and you cannot owe the IRS any money if you’re
going to file for Chapter 13 The Means Test There is a
means test used to determine whether you’re allowed to file for
Chapter 13 or Chapter 7 Once you have your financial facts in order,
you can begin to verify if Chapter 13 is right for you
5. The court will do this too, but it’s important to determine this
ahead of time as it will help facilitate your bankruptcy petition
Basically, you’re calculating if you will be able to pay back your
debt under Chapter 13 Working with a bankruptcy lawyer on the
means test can help ensure you’ve covered all aspects in
respect to filing for either Chapter 13 or 7
6. Contact Lenders and Creditors You may want to contact
lenders and creditors and try to work out new payment plans with
them A payment plan may include reduced interest, lower monthly
payments and forgiveness of late fees Whatever terms you do
negotiate in order to include them with your Chapter 7 filing, they
must be in writing from those to whom you owe the debt
7. Creating Your Plan When you file for Chapter 13
Bankruptcy, the court will require that you include a repayment plan
that covers three to five years The plan will have to be fiscally
sound, showing the manner in which you will pay down your debt Be
sure to include any correspondence confirming changes in payment
terms that will be utilized during your Chapter 13 process
8. Back on Your Feet Working with a Baltimore bankruptcy
attorney such as Daniel M Radebaugh can help you determine if
you meet the requirements for Chapter 13 and if it is in your best
interest
9. Chapter 13, while offering a way for debtors to get back on their feet
as they maintain their home and keep their possessions, is not for
everyone But if you are able to complete your payment plan, in three
to five years you’ll be on firm financial footing and once again in
control of your monetary affairs
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