Chapter 13 is the Federal Government's version of Credit7 Credit8. It's filed in Bankruptcy Court and it works by shrinking all your bills into one payment (not just credit cards). Many that need Credit7 Counseling1 under Chapter 13 and have discussed their case with an attorney, realize that although federal plan is widely available, but the associated fees may keep chapter 13 bankruptcy protection out of reach. Attorneys can charge an average of $4500 to file a Chapter 13 plan.
Bankruptcy Court does not require an attorney to approve your new monthly payment plan. The Bankruptcy Court will in fact recognize you as a "Pro Se" Credit7or, which means that you simply are representing yourself. Bankruptcy court will accept a Credit7 Credit8 plan prepared without an attorney as long as it is compliant with the new bankruptcy laws and is prepared properly.
A chapter 13 plan accepted by the bankruptcy court puts an immediate stop on any and all collection activity against you, such as an attempt to repossess your vehicle, wage garnishments, freezes on your bank account, and collection calls from creditors. Although Chapter 13 is not a loan, you do require an income to qualify for the monthly payment that you will tell the court you can afford.
Chapter 13 is very different from Chapter 7, otherwise known as "straight bankruptcy." Chapter 7 bankruptcy does not require an income and is designed for individuals and families that can no longer afford their credit obligations. Chapter 7 is actually a liquidation and requires that you sell your assets to pay your creditors. However, in most cases one does not have to "sell off" any assets. In fact all states provide more than adequate protection against the forced sale of any assets.
If you're seeking to file bankruptcy on your own because you can't afford the attorney fees, you must ensure that you properly identify, not only all of your assets for your own protection, but also those assets fair market value so that it does not become a question of liquidation.
Keep in mind, bankruptcy is a tool that should serve to reset your Credit0 picture and attorney fees should not work as a barrier between you and the protections of bankruptcy court.
Chapter 13 is the Federal Government's version of Credit7 Credit8. It's filed in Bankruptcy Court and it works by shrinking all your bills into one payment (not just credit cards). Many that need Credit7 Counseling1 under Chapter 13 and have discussed their case with an attorney, realize that although federal plan is widely available, but the associated fees may keep chapter 13 bankruptcy protection out of reach. Attorneys can charge an average of $4500 to file a Chapter 13 plan.
Bankruptcy Court does not require an attorney to approve your new monthly payment plan. The Bankruptcy Court will in fact recognize you as a "Pro Se" Credit7or, which means that you simply are representing yourself. Bankruptcy court will accept a Credit7 Credit8 plan prepared without an attorney as long as it is compliant with the new bankruptcy laws and is prepared properly.
A chapter 13 plan accepted by the bankruptcy court puts an immediate stop on any and all collection activity against you, such as an attempt to repossess your vehicle, wage garnishments, freezes on your bank account, and collection calls from creditors. Although Chapter 13 is not a loan, you do require an income to qualify for the monthly payment that you will tell the court you can afford.
Chapter 13 is very different from Chapter 7, otherwise known as "straight bankruptcy." Chapter 7 bankruptcy does not require an income and is designed for individuals and families that can no longer afford their credit obligations. Chapter 7 is actually a liquidation and requires that you sell your assets to pay your creditors. However, in most cases one does not have to "sell off" any assets. In fact all states provide more than adequate protection against the forced sale of any assets.
If you're seeking to file bankruptcy on your own because you can't afford the attorney fees, you must ensure that you properly identify, not only all of your assets for your own protection, but also those assets fair market value so that it does not become a question of liquidation.
Keep in mind, bankruptcy is a tool that should serve to reset your Credit0 picture and attorney fees should not work as a barrier between you and the protections of bankruptcy court.
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