Time is not the same for all. The ups and downs in business can cause financial crises. Filing bankruptcy can be very tough as the situation is already out of hand. During this turmoil, you can still find extraordinary financial aids with respect to the government plans. This is where a bankruptcy filer needs to conduct a Means Test. According to the Chapter 13 Means Test, a filer can structure an optimum payment plan that can last up to 5 years.
What is Chapter 13 Means Test?
A person can file bankruptcy and still can restructure his bills and payments. If he has debts, he can seek professional assistance to restructure the debts in an affordable way. It is the way one can find an affordable plan to catch up with the debt payments. Chapter 13 bankruptcy can save the day if aptly used. Let us take a look at the debt structure first.
There are two types of debts. Secured debts come with collateral. It means that the lending institution has the right to use collateral/mortgage to reimburse the loan amount. Unsecured debt is where a borrower has not used any collateral to get the amount disbursed.
According to Chapter 13, you can easily stop foreclosing your home by figuring out an affordable plan to pay. This flexibility is given to the citizens to get back on track without feeling too much financial burden during the time of turmoil. Let us consider an example. When a property is going for foreclosure, the associated mortgage company will try to reimburse the amount by selling the property. As you filed for bankruptcy, you will have to pay the court costs and attorney fees. It can amount to thousands of dollars. In this condition, you will need a secure financial plan to meet all these expenses slowly. Other loans and financial dues need to be planned accordingly.
Why should you conduct the Chapter 13 Means Test?
By taking the Chapter 13 Means Test, you can add some time to repay the loan amount and other expenses by following a restructured payment plan. this plan will be designed following your current income, non-exempt cases, and expenses.
It is highly advised that you discuss your case with an experienced Chapter 13 lawyer who can guide you on how to move forward. Do not commit anything by yourself, as that could land you into a debt trap. Stay positive, trust your lawyer, and you should have nothing to worry about.
Consult a professional
This is where you will need the assistance of a professional to figure out how you can plan the financials. Get some time to recover from the loss and set your life on the right track again.
