Filing bankruptcy indeed disturbs the financial status of a person and the disruption may continue for years. But still, when your current financial condition is not in your favor or you are under huge debt which you feel you cannot pay, filing for bankruptcy is a wise decision. It not only helps you to clear the debts but also puts the debt collection procedure on hold until the bankruptcy case is resolved or the suspension period is over. Chapter 13 of the bankruptcy code provides an individual with regular income, a chance to clear the debts and reorganize the finances. As per New York bankruptcy law, this chapter allows the debtors to make a repayment plan to clear the debts. The plan usually is for 3 to 5 years. In the meantime, you will not be disturbed by the creditors and their process of collecting debts. If any creditor tries to violate the law, he is likely to receive the contempt of court notice.
When it comes to filing bankruptcy under chapter 13, you must know all the details regarding details. Though any Long Island bankruptcy lawyer or attorneys from other places can give you the best suggestion regarding it, here are some details that may help you to understand chapter 13 and its clauses.
A person having a regular income through self-employment or business can file bankruptcy under chapter 13. To file a case under this chapter, the person’s secured and unsecured debts must be less than the stipulated amount. However, there is one condition. If any previous bankruptcy case was dismissed before due to any fault from the debtor’s side, the debtor cannot file a bankruptcy case within 180 days after the previous dismissal. A chapter 13 bankruptcy case begins when a debtor files the petition with the bankruptcy court of his own residential area. To continue the proceeding, the debtor must file certain documents i.e. the list of assets and liabilities; details of current income and expenses; details of unexpired leases and administrative contracts; and a statement of all financial affairs. After providing the necessary documents and verification process, the case begins and proceeds as per the requirements.
