What Parts of Debt are Consolidated Under Chapter 13 Bankruptcy?
Debt consolidation can be an immense relief for those struggling with huge amounts of debt from different sources. Filing bankruptcy makes it easy to be able to pay down those debts so that the constant looming fear of repossession or wage garnishment is eliminated. One thing to note is that there are only certain types of debt allowed to be included in certain bankruptcy applications. The Loris Law Firm can explain what the stipulations are for each form of bankruptcy. If you are interested in Chapter 13, debt consolidation attorney Mobile will show you the parts of your debt you can have consolidated.
Chapter 13 Bankruptcy And Debt
For each category of bankruptcy, there are rules that determine how your debt will be processed. Under Chapter 13, also known as the Wage Earner’s Bankruptcy, you can work to pay down debt of the following nature:
Unsecured debt:
-Lines of credit
-Credit cards
-Personal loans
Secured debt:
-Mortgages
-Car loans
Though Chapter 13 bankruptcy doesn’t get rid of all forms of debt, it provides a plan to pay down these common types.
The Bankruptcy Process
Once you are ready to file for bankruptcy, debt consolidation attorney Mobile can help you initiate the process. It starts with submitting a petition to the court for your request to be approved. This petition will list the debt you have and show that you have the financial means to make monthly payments. Once granted, you will have between three to five years to follow through with the payment arrangements set forth in the bankruptcy plan.
The complex process of filing for bankruptcy should be handled in conjunction with an attorney. If there is a mistake made in the process, this could result in a denial, making it difficult to handle the amount of debt you owe.
To learn more, contact the Loris Law Firm for a consultation.