A Brief Overview of Chapter 7 and Chapter 13 Bankruptcy – Legal Videos
A bankruptcy is a process in which a person seeks the extension of their the repayment of debt, as well as to protect their assets from being taken away or confiscated. The most common scenario is when an individual has a problem paying their creditors outstanding debts because of financial hardship. The petition is either rejected or accepted by the chapter 13 court. If accepted, a repayment arrangement is set up that the applicant commits to repaying their debts in installment until it’s finished.
The principal reason for filing for a chapter 13 bankruptcy is getting exempted from repaying some portions of debts or relief from those debts. You may find yourself asking, “What do I need to file chapter 13 bankruptcy?” For you to file for this type of bankruptcy, you’ll need be able to provide the court with evidence of possession of your assets. You must be able to prove that you earn a regular income. When it comes to whether chapter 13 bankruptcy stop foreclosure or stop it, the court would stop the creditors from restraining or foreclosing your property should your request receive approval.
Whichever category of bankruptcy you opt to file It will not absolve you from repaying debts. The chapter 13 discharge need not be confused as being disqualified from repayment of debts since it entails the court relieving you of having to pay the rest of your debt and barring creditors from demanding payments from the debtor.