There are many complexities to filing Chapter 13 bankruptcies. People often think it’s just a matter of asking, “Do I qualify, and how do I file?”
Those are legitimate questions, but there are many other aspects that you should be aware of if you’re considering Chapter 13. Here are three that you may not have thought of, but should.
High credit card debt can be especially troublesome because so many credit cards charge a very high rate of interest. It can be as high as 20-30 percent on outstanding balances. When this is the case, and a person has maxed out their credit limit, they can go on making minimum payments and never or barely reduce the balance.
Bankruptcy and discharge of bankruptcy can be fairly straightforward when a couple is married. When one spouse files for bankruptcy, their discharge protects the couple’s community assets. As long as the couple is married throughout the process, that’s pretty much the end of the story.
Bankruptcy trustees are appointed in practically every individual consumer bankruptcy case. Depending on the case, the trustee will have a variety of obligations and powers. What’s more, the trustee may be an attorney but does not have to be. In fact, many trustees are accountants, probably because their skill set is well suited to handling their duties.