In some cases, when you consider bankruptcy, your best option may be to use Chapter 13 Bankruptcy in Colorado Springs in conjunction with other tactics that your lawyer can help determine. For example, if you are able to change the terms of your mortgage before filing bankruptcy, then this will increase the chances that the submission is successful. Modifying your loan can lower your monthly payments, thus allowing more of your money to go towards paying the monthly bankruptcy trustee. A lawyer can help extinguish the debt you have more so than you taking the process on by yourself.
Chapter 13 Bankruptcy is a procedure that allows a person to hand over their debt to the bankruptcy court and file a plan to pay. The plan includes making regular payments to the debtor delivered by a person called the chapter 13 trustee. The trustee collects payments and pays creditors in the way prescribed in the plan. The plan is in effect, the Court prevents collection efforts of creditors, reducing the pressure on debtors throughout the repayment period.
People who undertake Chapter 13 Bankruptcy in Colorado Springs are required to attend a personal financial management course, usually given by the Chapter 13 Trustee on the day of the meeting of creditors. The meeting of creditors is informal, takes about 20 minutes, and is usually scheduled for 30-45 days after the petition is filed for Chapter 13. Individuals may file Chapter 7 bankruptcy or chapter 13. Many people wonder when Chapter 13 is favored by Chapter 7, and this really is based on four factors.
You may file Chapter 13 if:
1. You have enough income and want to pay your debts through court protection
2. You have tax debts
3. You own assets that can be seized if you apply for Chapter 7
4. You have filed a Chapter 7 bankruptcy in the past eight years
The plan to be submitted to the bankruptcy court must be proposed in good faith. You must pay the expenses of the bankruptcy process, and prove that each of your secured creditors will be paid (with some stipulations), showing that you will make the necessary payments on time. Contact David M. Koppa for more information.
