Chapter 13 Bankruptcy Attorney
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Filed under Bankruptcy
Chapter 13 of the US Bankruptcy Code allows an individual to reorganize debt to prevent the liquidation of assets. To launch a bankruptcy petition in the court, one has to fill several forms and attach numerous documents. Thus, a Chapter 13 bankruptcy attorney is of help in filing the petition with ease and accuracy.[br]
Chapter 13 Bankruptcy Attorney: Comparison with Chapter 7
A Chapter 13 bankruptcy attorney is particularly important for understanding the difference between this Chapter and Chapter 7. The accurate understanding of the advantages and disadvantages of both the chapters helps make a prudent decision. Some of the highlighted differences are:
- Chapter 13 is a reorganization plan, unlike Chapter 7 where a debtor has to sell off non-exempt assets to repay the loan.
- Chapter 13 allows the debtor to secure essential assets, such as home and car.
- It gives extended time to repay the loan. The period is usually between three to five years.
- An individual with no regular source of income cannot file under this chapter. It is best suited for wage earners. Other individuals would have to file a Chapter 7 petition.
- Chapter 7 offers a fresh beginning to a debtor. However, in Chapter 13 the pressure of repayment continues even after filing bankruptcy.
An attorney also helps in understanding debt priorities. Under Chapter 13, certain debts are considered as priority debts. Payments of these debts are primary to step above the bankruptcy repayment line. They include alimony, child support, employee wages, contributions to employee welfare fund and state taxes. Moreover, mortgage debts have to be paid in full to keep the house under custody. Other secured debts can be paid in full if the debtor wants to keep the property. Unsecured debts are paid in part or full as per court orders.
Role of a Chapter 13 Bankruptcy Attorney[br]
Apart from consultation, a Chapter 13 bankruptcy attorney performs the following duties:
- Advises on the development of a repayment plan, an essential document for petition approval.
- Files bankruptcy forms on behalf of the debtor.
- Assists in collecting the documents required to fill the court form.
- Represents the debtor in the bankruptcy court.
- Communicates with court trustees on behalf of the debtor.
Most individuals cannot understand the nuances of legal terminology. Hence, it is better to hire the services of an attorney for a bankruptcy case.