Bankruptcy petition filing is not difficult in United States because it is governed by various chapters under Bankruptcy Code framed by the federal government, though petitions are accepted in the appropriate courts in respective states. The states are not empowered to carve their own bankruptcy legislations, but their authority to determine property rights is used. Not all chapters are important for bankruptcy filing, except Chapter 7 for liquidation, Chapter 11 for reorganization, Chapter 12 for adjustment of debts of a family farmer with regular annual income, and Chapter 13 for complex reorganization of debts.
Privilege of bankruptcy filing under Chapter 13
A petitioner can’t file his own case and must be represented by a competent attorney like San Diego bankruptcy attorney, especially when filing under Chapter 13. This Chapter is envisioned for persons having regular income and are not bankrupt, but require time to pay off specified debts such as defaulted home mortgages that tantamount to an appropriate manageable plan for debt reorganization and consolidation. Thus, it is a complex reorganization of debts. This Chapter offers privilege to people facing imminent foreclosure of mortgaged property due to non-payment of mortgage instalments and also to those being harassed by the government agencies for non-payment of tax dues. Hiring a competent bankruptcy attorney in San Diego for petition in Southern California will offer a great support to get legal remedy.
Relief under Chapter 13
Chapter 13 has a complexity and it is not easy to get relief, unless case is represented properly. The debt payment can be deferred for a period of three to five years, once relief is granted by the court. Hiring a competent and experienced bankruptcy attorney San Diego will be of great help because worth of relief would be much more compared to the professional fee of the attorney. Thinking about suitable repayment plan coinciding your present and projected financial situation and discussing it with a competent attorney can take you out of trouble.