Last week, the Groce & DeArmon, P.C. blog looked at the filing process for Chapter 7 bankruptcy. Filing for any form of bankruptcy is stressful and time-consuming, but it is important to file for the right one and to do so swiftly to get the best results. Today, the Groce & DeArmon, P.C. blog discusses the other common form of bankruptcy: Chapter 13 bankruptcy. We will look at the qualifications for Chapter 13 bankruptcy and what the filing process looks like.
Is Chapter 13 Bankruptcy Right For You?
If Chapter 7 bankruptcy is the most common form of bankruptcy, then Chapter 13 is a close second. The biggest difference between Chapter 7 and Chapter 13 bankruptcy is how the debt is discharged. With Chapter 7 entails the prompt liquidation of assets, while with Chapter 13 bankruptcy entails a strict payment plan. Chapter 13 is beneficial because allows a person to keep their home and car, whereas Chapter 7 would likely force a person to liquidate those assets.
Do You Qualify?
Because Chapter 13 bankruptcy is usually preferable to Chapter 7, it also has a more rigorous qualification process. To qualify for Chapter 13, the debtor must have a regular income and have gone without a Chapter 13 filing for at least two years and a Chapter 7 filing for at least four years. Another important part of the Chapter 13 bankruptcy qualification process is your tax history. To qualify for Chapter 13, you must be up to date on your tax filings.
How Do I File?
The filing process for Chapter 13 bankruptcy is not all that different from that of Chapter 7 bankruptcy. As with Chapter 7, Chapter 13 begins with credit counseling, which is slightly different because this counselor may also help you develop your repayment plan. Then, just like with Chapter 7, the next step is looking for the right bankruptcy attorney. This step is especially important for Chapter 13 filings because of the complexity of this particular chapter.
Contact Groce & DeArmon, P.C. For More Information
Filing for bankruptcy is going to be stressful and time-consuming, regardless of which chapter you file under. However, if you are able to file under the right chapter and with the right bankruptcy attorney, the process becomes more bearable. At Groce & DeArmon, we want to help make that process easier on you. For more information on what we do, give us a call at (417) 862-3706 or contact us online today.