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What are the Defining Characteristics of Chapter 13 Bankruptcy?

Do you know what the difference is between chapter 13, chapter, 11, chapter 7, and all other types of bankruptcy? Unless you are a legal expert, probably not. If you are facing the possibility of filing for bankruptcy, however, it is imperative that you understand the different classifications so you file for the correct chapter.

The purpose of this blog post is to help you understand what chapter 13 bankruptcy in Nebraska constitutes, as well as explaining the benefits that come from filing for this type of bankruptcy through John T. Turco & Associates.

Distinguishing characteristics of chapter 13 bankruptcy in Nebraska include:

• Income is used to pay some or all money owed to creditors over a predetermined length of time
• Plan for repayment are firm and detailed
• Debts are streamlined into one combined, regularly-scheduled payment
• Payments usually run three to five years
• Person filing for bankruptcy is allowed to keep his or her property
• Agreement is approved by a court
• Bankruptcy under chapter 13 also applies to tax debt owed to the IRS

As you can see, chapter 13 bankruptcy in Nebraska may be a viable option if you are currently unable to make necessary payments but feel like you could pay with more time. Additionally, chapter 13 bankruptcy consolidates debt. By using a “means test” to gauge how adequately your expected income will be able to cover the severity of your debt, your bankruptcy lawyer can devise a payment plan that will afford you flexibility and consolidate your dividends owed.

Debt accrues for a variety of reasons, but it is important to remember that relief is available. It doesn’t matter if you are in debt from failure to make mortgage payments, credit card payments, divorce expenses, overextension of business budget, high medical bills, or even unbridled personal spending. What matters is that you contact a bankruptcy attorney as soon as possible so that you find relief and regain financial freedom.

If you are overwhelmed by debt, let the skilled attorneys at John T. Turco & Associates determine if filing for chapter 13 bankruptcy in Nebraska is right for you. Initial consultations are always free. And when you consider that we have more than 23 years of experience handling bankruptcy, you can feel confident in our assessment of your case. Managing debt is easier when you have strong legal advice, so contact us today.

This site is not intended to constitute legal advice, nor does it create an attorney-client relationship. The materials on this site are not guaranteed to be complete or current, and they should not be relied on as a substitute for legal advice. This site conveys general information related to bankruptcy law in Omaha, Papillion, Bellevue, Gretna, Council Bluffs and surrounding communities. If you are contemplating or involved in any matter in which legal advice or other expert assistance is required, the services of a competent professional should be sought. The determination of the need for legal services and the choice of a lawyer are extremely important decisions and should not be based solely upon advertisements or self-proclaimed expertise. This disclosure is required by rule of the Supreme Court of Iowa. Memberships and offices in legal fraternities and legal societies, technical and professional licenses, and memberships in scientific, technical and professional associations and societies of law or field of practice does not mean that a lawyer is a specialist or expert in a field of law, nor does it mean that such lawyer is necessarily any more expert or competent than any other lawyer. All potential clients are urged to make their own independent investigation and evaluation of any lawyer being considered. This notice is required by rule of the Supreme Court of Iowa.