Keep Assets And File For Bankruptcy

For people with significant assets who wish to keep those assets and file for personal bankruptcy, Melrose Park bankruptcy lawyers suggest that they file for chapter 13 personal bankruptcy. Also called bill consolidation by many Melrose Park bankruptcy lawyers, chapter 13 reorganizes debt into a three to five repayment plan.

The chapter 13 procedure involves you consolidating your debts and making monthly payments to a court-appointed trustee. This repayment plan has to take at least three years, but won't go any longer than five. Melrose Park bankruptcy lawyers help you put together this repayment plan, which must be submitted to the court for approval.

The amount of the monthly payment and the length of time for the repayment plan depends on: your monthly income, your monthly expenses, and the amount and nature of the debt. Chapter 13 can also be used for repayment of mortgage arrears, or back amount owed, home, and to restructure auto loans to save a car.

Secured debts must be paid 100% on the dollar, while unsecured debts do not have to be paid 100% on the dollar. Once the chapter 13 bankruptcy has ended, you receive a discharge and can start rebuilding your credit.

A chapter 13 bankruptcy stays on your credit report for 7 years. If you are eligible for both and have already filed for chapter 7 personal bankruptcy, you can switch over to chapter 13 at any time, or vice versa, as long as you have not already switched over once beforehand.

Due to federal laws passed in 2005, it has become harder for people to pass a means test to become eligible for chapter 7 personal bankruptcy. Also due to the liquidation of non-exempt personal property, many people do not wish to lose that property, but want to file for bankruptcy. This is why chapter 13 bankruptcy has become more popular.

For experienced, knowledgeable and trustworthy bankruptcy assistance, contact the attorneys from www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 offices across the country.