Understanding Chapter 13 Bankruptcy: What You Need to Know

Chapter 13 bankruptcy is a type of bankruptcy that allows individuals with regular income to reorganize their debts into a manageable repayment plan. Under Chapter 13, you must pay back all or a portion of your debt over three to five years. Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off debts, Chapter 13 allows you to keep your property and repay your creditors over time. It is important to note that Chapter 13 bankruptcy is only available to individuals, not businesses.

Will Filing For Chapter 13 Bankruptcy Affect My Job?

Filing for Chapter 13 bankruptcy should not affect your job. The Bankruptcy Code explicitly states that an employer cannot discriminate against an individual solely because they have filed for bankruptcy. However, if you have a security clearance or work in a high-security job, filing for bankruptcy could potentially raise red flags in the clearance investigation process. It is essential to discuss your situation with a bankruptcy attorney before filing for Chapter 13 bankruptcy, especially if your job involves government clearance.

Dealing with financial difficulties can be overwhelming and stressful. If you are struggling with debt and are considering filing for bankruptcy, it is essential to understand your options. Chapter 13 bankruptcy is a viable solution for those who want to reorganize their debts and create a manageable repayment plan. In this post, we’ll discuss chapter 13 bankruptcy, including its legal implications, how it affects your job, and the benefits of filing. At The Williams Law Group, PLLC, we can assist Idaho residents with all bankruptcy matter

Benefits Of Filing For Chapter 13 Bankruptcy

Chapter 13 bankruptcy provides several benefits to debtors, such as:

Stop Collection Actions: 

Once you file for Chapter 13 bankruptcy, creditors cannot continue collection attempts or lawsuits against you. This is known as an automatic stay, and it protects you from harassment and gives you time to create a repayment plan.

Keep Your Property 

Unlike Chapter 7 bankruptcy, which requires liquidation of assets, Chapter 13 bankruptcy allows you to keep your valuable property, such as your home or car, and repay your debts over time.

Manageable Repayment Plan: 

Chapter 13 allows you to restructure your debts into one monthly payment. By setting up a manageable repayment plan, you can pay off your debts without sacrificing your lifestyle or assets.

If you are struggling with debt, filing for Chapter 13 bankruptcy can alleviate financial stress and provide a path to financial stability. At The Williams Law Group, PLLC, we can help you navigate the complex bankruptcy process and create a repayment plan that works for you. Don’t hesitate to contact us to schedule a consultation and get expert legal assistance with your bankruptcy case.