Chapter 13 is a great way for people who are considering bankruptcy to restructure their debts under a government-supervised plan. If you are filing for bankruptcy, consolidating and restructuring your debts under Chapter 13 might be the best financial move you ever make. Unlike Chapter 7, in which your assets are liquidated and all of your debt is cleared, Chapter 13 is more geared toward fixing a problem over time.
What Could Go Wrong?
Well, when you’re filing for bankruptcy the smart way, nothing could go wrong. Hiring a professional attorney to walk you through the process and ensure all the proper steps are completed is usually a sure-fire way of getting things done the right way.
Unfortunately, many people will go wrong by coming up with a plan that isn’t realistic. Chapter 13 encourages the debtor to design a restructuring plan that works with their income, liabilities, and debts. While this should be really great, if the plan you design on your own isn’t realistic, the courts won’t approve it.
Some people are under the impression that they can write any plan they want just to get their case through. However, the details are carefully examined by the courts. Rewrites are time consuming and cost more money, which means getting it right the first time is important.
When you hire a professional bankruptcy attorney, you shouldn’t have any worries about getting your Chapter 13 plan through the courts on the first try! A professional has the experience and wisdom to tell you if your plan is likely to be approved or not.