If you've been arrested for a crime you didn't commit, you need to defend your legal rights. You have the right to an attorney who can help you present your case. After being wrongly accused of something myself, I learned quickly how to navigate the legal avenues to have my case dismissed. My attorney was a great resource for building the case, and because of my understanding of the law, it worked. I created this site to share what I learned along the way and some other great tips for others who have been wrongly accused and arrested for a crime.
After making the decision to file for bankruptcy, you must decide which type of filing is best for you. In some instances, filing for a Chapter 13 makes more sense than a Chapter 7. If you fit any of the following situations, a Chapter 13 filing might be best for you.
You Want to Catch Up on Payments
In a Chapter 13 bankruptcy, you must file a repayment plan with the court. The plan is your proposal for repaying your creditors. If you want to catch up on your debts, a Chapter 13 is best. The filing will allow you an opportunity to catch up on your mortgage, car notes, and any other secured debts that you have. Secured debts are those which are dependent on collateral.
The payments that you are behind on will be factored into your repayment plan, which allows you to pay them off while staying up-to-date on your current payments. In some instances, your creditors might be willing to renegotiate the terms of your agreement to forgive part of the arrears or lower your interest rate on the balanced owed.
You Have a Cosigner
If you secured credit with the help of a cosigner, he or she could be left responsible for the debt if you file for a Chapter 7. Your obligation for the debt would be most likely discharged, but the creditors could still go after your cosigner. If your cosigner is unable to pay the debt, his or her credit rating could be impacted in a negative manner.
To ensure that your cosigner is not left responsible for the debt, file for Chapter 13. When you file, your cosigner will not be held responsible for the debt as long as the agreed payments are made to the trustee.
Your Debts Will Not Be Discharged
For many, filing for a Chapter 7 is a way to get rid of some of their debts. The debts are discharged and there is no more legal obligation for them. However, discharges only apply to certain debts. If you have debts that are not dischargeable, filing for a Chapter 13 is more logical. Debts, such as student loans, some taxes, and alimony are not dischargeable. When you file for a Chapter 13 though, you can set up a payment plan to pay those debts.
There are other situations in which filing for a Chapter 13 is the more logical choice. Consult with an attorney like Richard S. Ross - Bankruptcy Attorney to discuss what would be best for you.
Share8 September 2015
