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  • What is Chapter 13 Bankruptcy?

    Simply charging into a chapter 13 bankruptcy can be an enormous mistake! During this process, there will be numerous qualifications, time deadlines and forms you must complete, as well as the naturally suspicious and keen eye of a bankruptcy trustee and the grit and tenacity of your creditors legal teams. There are dozens of steps in the bankruptcy process where one wrong move – one poorly or improperly filed paper, one above-average paystub, one missed meeting – can, quite literally, bring the walls down around you. For these reasons, it is highly suggested that you hire a professional bankruptcy attorney, such as John A. Hixson, to guide you through each step of the way in your filing of chapter 13 bankruptcy.

    Chapter 13, also known as ‘reorganization’ or ‘restructured bankruptcy,’ is a specific type of bankruptcy where instead of immediately surrendering their assets and annulling their debts as they would in a chapter 7 bankruptcy, an individual instead, with the direct supervision of a bankruptcy court, formulates a plan to pay back debts in a structured three to five year plan.

    This type of bankruptcy tends to be far less invasive than a chapter 7 bankruptcy proceeding, as you are allowed to keep all of your assets, so long as you can provide proof of means of repaying those items like your home and automobile, and instead make regular payments to your creditors in a highly supervised schedule. While this may sound like a great plan for those who are financially under the weather, you should know that this is an extensive and grueling process that can substantially affect your life for up to five years.

    Chapter 7 bankruptcy is often a more hasty way of getting out of debt, as it lasts only a few months, and while many assets and items of value are lost in the process, it allows those filing for it to quickly get back on their feet. However, those families with children specifically may seek chapter 13 bankruptcy as a means of not impeding on their child’s lifestyle, and many other factors go into which type of bankruptcy you should declare.

    A completely free consultation with John A. Hixson, attorney at law and bankruptcy law professional will quickly help you decide which bankruptcy you qualify for and which one may be best for you. Working closely with your attorney, you can quickly decide which of these two evils is going to be easier to stomach, and which will affect your life less.

    The basis of chapter 13 bankruptcy, and its appeal is how non-invasive and indirect it is. Instead of having items repossessed and sold to pay back debts, you will simply be making regular payments over a window of time, which leads to part or all of your debts to be paid off, and leave you debt free. If you think Chapter 13 bankruptcy is right for you, call John A. Hixson today, and get the ball rolling on the lengthy procedure of filing bankruptcy, and feel the relief of the ‘automatic stay,’ a legal obligation and protection that prevents seizure or harassment from your creditors! Call now!

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    • hixson_admin Aug 15 2014
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