Chapter 13 Bankruptcy Exemptions
When you are no longer able to repay your debts according to the terms that have been established, it may be appropriate to consider filing for Chapter 13 bankruptcy protection if you are earning steady income. In a Chapter 13 bankruptcy case, debtors are able to restructure the specific details of their debt repayments so that they can continue to make payments. Central to this is the consolidation of various debts into one repayment plan. Before filing, however, it is important to be aware of the way exemptions bear on the process.
Developing a repayment plan is an essential part of a successful Chapter 13 bankruptcy, and utilizing the available property exemptions to create a plan which the court will find acceptable is a complex process. Working with a skilled legal professional can be very beneficial in this effort. For capable legal counsel and representation, contact the Cedar Rapids Chapter 13 attorneys of Hong Law, PLC, at (319) 294-5853.
How Exemptions Work in Chapter 13
While the value of some of your property may be exempted from your repayment plan, only a minimal value based on the size and location of your household will be permitted. The full value of your remaining property must be added to the total amount of your repayment plan in order to cover the debts owed to your creditors.
When large amounts of non-exempt property are in your possession, it can increase the cost of your repayment plan to the point that you can no longer afford it, making Chapter 13 an unviable option. In situations such as this, it may be in your best interests to consider liquidating significant amounts of non-essential property in order to balance your financial situation to the point where bankruptcy can work for you.
No matter how overwhelming your debt situation may seem, the experienced Cedar Rapids Chapter 13 lawyers of Hong Law, PLC, can help you to determine whether filing for bankruptcy might be advantageous. Contact us by calling (319) 294-5853 today.
Coralville, IA 52241
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