| In today's society, many people are turning to Chapter | | | | after the claim has been approved through the courts. |
| 13 bankruptcy as an answer to their financial troubles. | | | | It is important to keep in mind that not all claims are |
| Whether your financial troubles are due to careless | | | | approved. Each one is reviewed and a decision made |
| use of your credit or because you have lost your job | | | | according to circumstances. In other words, filing |
| and are unable to pay your bills, Chapter 13 bankruptcy | | | | bankruptcy is not a rubber stamp; you need to be |
| can be the answer you are looking for. | | | | approved by the judge to actually proceed with the |
| It is important that you only turn to bankruptcy after | | | | filing. |
| you have carefully gone over all of your other options. | | | | Chapter 13 bankruptcy allows you to keep your |
| For instance, you will want to first try credit counseling | | | | current assets. For instance, in most cases you will be |
| and/or credit consolidation. But if all other avenues | | | | able to keep your house and vehicle, unlike with |
| have been given a shot, then you will definitely want to | | | | Chapter 7 bankruptcy, which requires you to sell off a |
| consider bankruptcy. Do not look at bankruptcy as | | | | majority of your assets to repay your creditors. |
| being your first or only option; rather, it should be | | | | No matter what type of bankruptcy you choose, it will |
| considered your option of last resort. | | | | have a lasting effect on your credit rating for at least |
| With chapter 13 bankruptcy, you will want to hire an | | | | 7-10 years. After you have filed bankruptcy, it will be |
| experienced lawyer to help you through the entire | | | | much harder to obtain any type of credit. If you are |
| process. An experienced lawyer will be well versed in | | | | able to obtain either a credit card or a loan, it will |
| the laws of your state. Therefore, he or she can make | | | | generally come with a much higher interest rate. It will |
| sure you get the most benefit from your bankruptcy. | | | | take a considerable amount of time to rebuild your |
| When filing Chapter 13 bankruptcy, it is important that | | | | credit rating and bring it back to a good standing. |
| you have a full understanding of what all is involved. | | | | Bankruptcy can be a great way to end your financial |
| Unlike other forms of bankruptcy, you will still be | | | | troubles. However, it is important that once you have |
| required to pay off a portion of your debt. However, a | | | | filed bankruptcy you change your lifestyle, so that you |
| repayment plan will be set up by you, your lawyer and | | | | do not end up back in your current situation. With the |
| the court system. | | | | help of an experienced bankruptcy lawyer, filing |
| You will need to submit a summary of all your current | | | | Chapter 13 bankruptcy will be an easier, more |
| debt, as well as your current income. The courts will | | | | effective route to end your financial problems and put |
| then approve a repayment plan, where a portion of | | | | you back on the right path. |
| your debt will be repaid. This generally begins 45 days | | | | |