Because of the difficult economic climate, it’s not surprising that people filing for bankruptcy, both individuals and businesses is on the rise. Bankruptcy has always been a component for financial recovery but what many people fail to understand is the different types of bankruptcies that an individual or business can file for. One of the more common types of bankruptcy that individuals as well as businesses will petition the court for is chapter 13. If you are considering bankruptcy and you fall under the category of people eligible for this type of bankruptcy, your first consideration is to have a chapter 13 attorney in York representing you.
The question you may have is what exactly is Chapter 13 and how does this differ from other types of bankruptcies. Chapter 13 is a process of bankruptcy where the filer of bankruptcy will pay off a reduced amount of debt in a specific period of time, anywhere from 3 to 5 years. Unlike other types of bankruptcies, this type of bankruptcy doesn’t discharge all of your debts but the bankruptcy lawyer works with your debtors to reduce the amount of debt you owe and allow you reasonable terms and a reasonable time to repay those debts.
However, it is important to understand that not everyone is going to be eligible for Chapter 13. While Chapter 13 will help to minimize the damage done to your credit report from bankruptcy, if you have insufficient levels of income or if your income varies from month to month in a significant manner, the courts may deem that you are simply not eligible for this type of bankruptcy filing and you will need to pursue filing bankruptcy under a different chapter.
If you’re at the point to where you need to consider bankruptcy but you feel that you can repay some of the debt and you don’t want to do great harm to your credit report, if you call the areas of Mechanicsburg, Harrisburg, Lebanon or York home, you should consider contacting the law office of john m.hyams to see what your bankruptcy options are. By consulting with this law firm, you will understand the process of bankruptcy, which type of filing will be right for you and you can get the ball rolling on your financial recovery.
