At first some individuals don’t like the fact that they can only qualify for the Chapter 13 Bankruptcy. However, once it is all put into place and they feel the relief that it can bring, they are happy with the choice they made to go bankrupt.
Under the Chapter 14 bankruptcy you will be making structured payments to your creditors. How much and for how long is determined by a repayment plan that is designed for your particular situation. In order to design this plan it first has to be determined as to how much disposable income you have to put towards your payments.
Then the negotiations with your creditors are started. It may be that some of your creditors want all of the money owed to them, while others will settle for a portion. Your Houston bankruptcy lawyer can assist you with drafting your payment plan, and talking with your creditors. The plan that you come up with for repayment has to be approved by the bankruptcy courts. Once this is done then a payment schedule is set up and this is done through a bankruptcy trustee.
Bankruptcy can be complex yet at the same time it is a viable option for getting back on your financial feet. Once the chapter 13 bankruptcy payment terms have been agreed upon you must follow this plan exactly as stated. At the same time your creditors have to abide by it as well. They cannot hassle you for more money. At the end of the bankruptcy term all of the debts that made up your plan will be discharged.