About Bankruptcy
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, unlike Chapter 7, involves a repayment plan. The repayment plan is approved by the bankruptcy court and involves an individual paying a feasible monthly payment, while still being able to fulfill their basic needs. An individual who has filed for a chapter 13 bankruptcy is allowed to keep their assets while paying a monthly fee for 3 to 5 years. To qualify for chapter 13, your unsecured debts must be less than $250,000 and your secured debts must total less than $750,000. An individual must also have a stable and regular income.
If an individual has considerable debts that may be liquidated and lost under Chapter 7, they may consider chapter 13. Many debts that can not be discharged under Chapter 7 bankruptcy can be removed with a Chapter 13 bankruptcy filing. For example: if an individual was behind on mortgage payments, rather than stand the risk of losing their property, as with a chapter 7 filing, they can negotiate a payment method with the bankruptcy court. Even the IRS can be paid back over time if an individual has an outstanding federal income tax balance. However, the effects of filing for bankruptcy can be fairly psychologically detrimental. (To find out about the effects of bankruptcy click here.) At American Financial we offer free information on alternatives, so make sure you are making the correct decision and call us today at 800-931-4237.
- Credit Cards
- Unsecured Loans
- Unsecured Personal Loans
- Unsecured Personal Lines of Credit
- Collections, Autos in Repossession
- Home Loans / Mortgages
- Auto Loans / Student Loans
- Government Loans
- Lawsuits, IRS Debt/Taxes
- Secured Debts / Medical Bills
* Individual results may vary based on ability to save funds, amount of debt, willingness of creditors to negotiate, and the successful completion of all program terms. DMB's fees not included in savings disclosure. Program does not assume or pay any debts, nor provide legal or tax advice. Prudence should always be taken by consumers when reviewing contracts and disclosure materials. DMB's services not available in all states.
