If you’re considering filing for bankruptcy in Edison, NJ, it’s important to understand the different types of bankruptcy and how they might affect your financial situation. There are two main types of consumer bankruptcy—Chapter 7 and Chapter 13. This blog post will focus on Chapter 13 bankruptcy and provide a brief overview of what it entails. 

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is designed to help individuals who have a regular income but can’t pay their debts. Under this form of bankruptcy, debtors propose a repayment plan to pay off all or part of their debt over a three-to-five year period. The repayment plan must be approved by the court before the debtor can complete the process. Once approved, creditors are not allowed to contact the debtor or take any collection actions against them while they are making payments under their plan. 

When Should I File For Chapter 13 Bankruptcy?

The best time to file for Chapter 13 is when you have enough disposable income each month that you can make regular payments towards your debt without putting yourself further into financial hardship. It’s important to speak with an experienced bankruptcy attorney before proceeding with this type of bankruptcy filing as there are certain eligibility requirements that must be met in order for a person to qualify for it. 

What Can I Keep If I File For Chapter 13 Bankruptcy?

Under most circumstances, you will be allowed to keep most of your possessions during a Chapter 13 filing such as your car, furniture, jewelry and other personal effects. In some cases, you may even be able to keep property such as real estate or business assets if they are included in your proposed repayment plan and approved by the court.

Will Filing For Chapter 13 Bankruptcy Affect My Job?

No—filing for chapter 13 should not affect your job unless you work in an industry where financial transactions require trustworthiness (such as banking). In those cases, employers may want proof that you have completed all required payments before granting approval or allowing access to certain accounts or services. 

At Velasco Law Office we can assist New Jersey residents with any chapter 13 bankruptcy matters they may face. With our experienced team of professionals at hand we can help clients navigate through one of life's toughest challenges; filing for chapter13 bankruptcy in Edison, NJ . Our team understands how difficult it can be and will strive hard to make sure our clients understand everything they need know about this process so they can make an informed decision with confidence and peace of mind knowing that they have taken the right steps towards financial freedom. Thanks for reading! Contact us today if you're ready to get started!