Chapter 13 Bankruptcy Filing

People filing for bankruptcy have recourse to a life of dignity and an opportunity for a fresh start on account of the laws, rules and regulations that bankruptcy laws provide in the US. One certainly does not have to be condemned to a life in the doghouse or in abject penury for the rest of their lives just because they not able to meet their loan obligations as well as commitments in time, leading to the bankruptcy. Filing for bankruptcy can be under chapter 7 and chapter 13, where the terms of Chapter 13 Bankruptcy are quite different from that of Chapter 7.

Chapter 13 Bankruptcy occurs when the economic criteria as well as income of the person who is filing for bankruptcy is considered. This does not involve liquidation of assets, unlike in the case of chapter 7 bankruptcy. The chapter 13 bankruptcy calls for re-structuring of debts which involves an assessment of he sources and quantum of income as well as the expense of an individual. This is required to assess whether the person is capable of making good the loan over a period of time. The period of time allowed is between 3-7 years and is done under the supervision of law enforcement agencies and the courts. As per Chapter 13 Bankruptcy filing norms and rules, a person need not give up his assets, but receives a new plan to pay off the debts under a new schedule and terms that are decided by the courts. The person will have to commit to the schedule and accept these terms unequivocally and without any deviation at all.

A person who files under Chapter 13 is able to keep the property without having to liquidate it. The terms of repayment decided by the courts are binding not only on the borrower in terms of payment but also the lender who cannot deny or disagree as that would be rank contempt of court. It also gives a person recourse to a full discharge of liabilities and to retain one’s fair name and dignity, indeed a right to live with honor secure in the knowledge that one has not defrauded anyone or shrink back from carrying out one’s responsibility.