Have you fallen extremely behind on paying your mortgage and monthly living expenses, but not willing to lose any property you may have? Filing for a Chapter 13 bankruptcy can allow you to keep your financial assets, and set up an affordable repayment plan with your creditors. You must have certain qualifications in order to file for a Chapter 13 bankruptcy, which will still have a negative impact on your creditworthiness.
What Is Chapter 13 Bankruptcy?
A Chapter 13 bankruptcy allows you to settle all your debts by setting up a repayment plan with your creditors, without having to sell and use any of your assets to pay back the creditors. In order to qualify for a Chapter 13 bankruptcy, you must prove that you have enough income to afford the payments, and your debt total should be below the maximum total debt limits which are $400,000 for unsecured debts, and $1 million for secured debts. The payment plan on the settled amount can last anywhere from 3 to 5 years, but once completed your remaining balances with your creditors will be discharged.
Effects Of Chapter 13 Bankruptcy
Filing a Chapter 13 bankruptcy can be financially, emotionally, and mentally draining, but might be the only solution when bills are piling up. Bankruptcy can negatively affect your credit greatly and will stay on your report for up to 7 years from your filing date. Your credit score may take a big hit and go down significantly within that 7 year period, which will make it really difficult to get any type of credit such as a personal loan, auto loan, mortgage, credit card, or any line of credit. If you were to get approved, you may be charged high interest rates, and need a co-signer in order for any application to be completed. Bankruptcy can make it very difficult for you to finance anything on your own but will give you a fresh start to handle your finances.
Chapter 13 Bankruptcy With Jack Berman In Redford MI
If you are looking to file a Chapter 13 bankruptcy, Jack Berman in Redford MI has devoted over 40 years of his career in representing clients with bankruptcy cases. Jack Berman is accredited by the Better Business Bureau and is dedicated to guiding his clients through every step of this difficult process. To learn more about a Chapter 13 bankruptcy you can contact us online, or call us at our Wayne County location at 734-367-0600 or at our Macomb County location at 586-779-6000 today!