The other most common form of bankruptcy is chapter thirteen. Chapter thirteen will help you stop a foreclosure attempt, if that is the situation you find yourself in. The rate of foreclosures is going up. This is due to a number of factors. A Bankruptcy equity home loan may be an option for you. Many financial institutions made loans that were not good and in the downward economic spiral many people are facing lost jobs and income.
After a chapter thirteen filing, creditors cannot attempt to collect the debt. However, chapter thirteen is a form of bankruptcy that will require you to repay the debt. A new payment plan will be decided upon between the judge, you and the people you owe money to and the new plan will be free of interest payments. No test is necessary for a chapter thirteen filing.
Chapter seven and chapter thirteen bankruptcies are the most common forms filed today, and you will need to examine both to decide which is the best form for you. In the case of chapter seven bankruptcy, all unsecured debt can be discharged and you will no longer be responsible for paying it back allowing you to get much needed Bankruptcy help. After filing for chapter seven, your creditors will no longer be allowed to contact you about collecting the debt. But there is something else you need to know.
The judge might decide to sell property that you own in order to repay some of the debt you owe. Chapter seven bankruptcies are decided on the basis of a test. The test will look at your income and the income of others in your state. If you are not paid as highly as the average worker in your state, you will be qualified to file for chapter seven.
