It should only be used as a last resort.
Before filing for bankruptcy make sure you have analyzed and thought of every possible alternative because once you have sent the file, there is no going back.
One of the few reasons people file for bankruptcy is because they lack the knowledge about what really happens when you are bankrupt.
For ten years straight, you cannot use your credit or have any loans, which can be a very difficult way to live.
That being said, here is some chapter 13 bankruptcy information.
People are more likely to choose chapter 13 bankruptcy over chapter 7 because they actually have the willingness to pay off their debts.
Also, just because you are bankrupt doesn't mean that you can't make up for the missed payments.
In fact, you can actually reinstate an original agreement on your car loan or mortgage to pay back for the missed payments.
Some additional chapter 13 bankruptcy information is if the debtor has received a discharge under Chapter 7, 11 or 12 more than four years ago, or if you have received a discharge under chapter 13 more than two years ago, then you can file for chapter 13 bankruptcy.
In addition to this, you have a tax debt you must uphold.
For example, if most of your debts are from federal taxes, then this will further determine the kind of bankruptcy that you will fall under.
The whole point of the chapter 13 bankruptcy is to help people find a balance to face their financial difficulty while finding a means to help pay off their debts.
It usually takes around 36 to 60 months to have the full repayment plan.
This way secured creditors are prioritized to get paid first with the initial help and reminder from the bankruptcy court.
There are also bankruptcy petitioners who will keep the current payments and will make the monthly payments to pay off the due balances.
One of the great benefits of filing for chapter 13 bankruptcy is that everything is being made under a schedule.
If you fail to comply with the schedule there will be penalties that you will have to face.
Also, it is still possible that the unsecured remaining debt at the end of the plan can be discharged.
These are just some of the chapter 13 bankruptcy information you need to know before you file.