When residents of New York fall into debt, it can seem like a long and difficult climb to get back out of it. Not only that, but there are so many choices for debt relief and different bankruptcy options available that it can feel impossible to choose which one will work for your specific situation. Today, we will look at Chapter 13 bankruptcy and whether or not it may be a good choice for you.
This type of bankruptcy is useful for those who want to avoid the liquidation aspects of Chapter 7 bankruptcy. It is sometimes called reorganization bankruptcy, as instead of relying on selling relevant assets to pay creditors, it instead relies on you creating a repayment plan to pay off your debts over a three to five year period of time.
Because of this, anyone that files for Chapter 13 bankruptcy has to reasonably be able to pay off their debts within this frame of time on whatever new plan they come up with. You cannot be barred from filing due to a previous bankruptcy filing, either. You cannot be filing as a business entity; a separate type of bankruptcy covers for that. You also cannot have had a previous bankruptcy case that was dismissed within 180 days of your recent filing. Finally, you must have fulfilled your credit counseling requirement.
If you are taking a look at Chapter 13 bankruptcy and want to learn more about it, or about other forms of bankruptcy, then consider viewing our web page linked here. You can learn all you want about bankruptcy there.