Insights Into Chapter 13 Bankruptcy Law

Chapter 13 bankruptcy law governs personal reorganization bankruptcy, which is a complicated process in which a debtor presents the courts with a repayment plan to pay off his creditors over time as part of his petition. In order to maximize the chances of this repayment plan being accepted by the court, solid knowledge of chapter 13 bankruptcy law is required. However, even if you’re not a legal expert, there are some insights into chapter 13 bankruptcy law everyone should keep in mind when constructing a repayment plan.  

In the first place it is essential to be aware of the statute of limitation on debts in your state when listing your debts.  According to consumer and chapter 13 bankruptcy law, if the statute of limitation of debt has expired, you do not have to pay this. Knowing which debts are current and which aren’t can save you a lot of money. It’s also important to know which assets are exempt under chapter 13 bankruptcy law.  

Exemptions are assets the court will not include in your reorganization, which means you may keep them without penalty to your chapter 13 bankruptcy law case.  Exemptions can provide a certain amount of stability for your life during and after your bankruptcy filing. A key aspect to remember is that when you construct your repayment plan according to chapter 13 bankruptcy law, you can try to negotiate up front with certain creditors.  

For example, if you need to restructure your mortgage in order to keep your house, you can seek approval from your mortgage lender before including this in your repayment plan. Upfront negotiation can facilitate the rest of the repayments, and minimize the lender’s risk in the event of collection agency and foreclosure fees or a liquidation bankruptcy. Under chapter 13 bankruptcy law, one deadline that should never be forgotten is the first payment.  

According to chapter 13 bankruptcy law every debtor must make his first payment to the repayment plan within a month of filing the petition – even if the petition has not yet been approved. There are no exceptions or extensions to this rule under chapter 13 bankruptcy law, and therefore the correct financial planning must be taken into account with regards to making the first payment. Lastly, remember that if you make all your payments on time, you will receive your official discharge from the judge in the most expedient manner.