Chapter 13 bankruptcy is a type of protection that is used by individuals and businesses who are overwhelmed in debt and have not recovered through other methods. Chapter 13 may stop foreclosures and vehicle repossessions and gives the filer the chance to get a fresh financial start. Need more information about chapter 13 bankruptcy pueblo co? Take a look at the five important facts below that you may not have already known.
1- Financial Protection During Chapter 13
Once a person declares Chapter 13 bankruptcy, they’re protected against debtors and financial obstruction for three to five years, depending on the length of time the bankruptcy is filed.
2- Co-Signers are Protected
Anyone who cosigned a loan or other debt for you is protected against future obligation once Chapter 13 is filed. There are conditions to this require, however, so it is best to speak to a lawyer to protect everyone involved.
3- Chapter 13 Can Be Cancelled
Should you experience an improvement in your financial situation and want to cancel the Chapter 13, you may do so at any time.
4- Tax Debt
If you owe Uncle Sam money and the debt is more than three years old, you may be able to get it dismissed under a Chapter 13 bankruptcy plan. This is also something that differs from one case to another, although it is allowed in most cases. Furthermore, Uncle Sam must go along with any repayment plans that you make with the courts.
5- You need a Lawyer
It isn’t a big secret that a lawyer is a legal expert who protects you at the most important times, like when declaring bankruptcy. You can file bankruptcy without a lawyer, but it’s best that you have a legal expert by your side.