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Chapter 13 bankruptcy to get discharged

The bankruptcy is never situation which needs legitimized way to get discharged. There are two ways to get discharged from the bankruptcy. And the ways of getting discharged from the situation depends on the reason of being a bankrupt. Many people carry on default with a debt repayment for the financial hardship. And many people might have other reasons.

The chapter 13 bankruptcy is applicable for those who are being bankrupt with the other reasons apart from the financial hardship. So, if you have got other reasons, you must have to be prepared for this judgment. You will have to maintain the following procedures:

Filing a petition:

When you file yourself as bankrupt, you must need to find ways to get discharged from it. And the discharge procedure must have to be a legitimized way. You need to file a petition for that in the nearest court. And after that you will have to move through the next procedure.

Statement of the reason:

After filing the petition, the court will ask you about the reasons which have leaded you towards bankruptcy. Then you will have to give statement on the reason which has leaded you towards bankruptcy. The reason here must not be hardship. Rather the reason must have to anything apart from hardship. It might be divorce, business loss, other loan payment etc.

You must state the reason and submit the necessary documents which can prove your statements. The court will certainly verify whether you are saying the right things or not. So, you must not go for any false statement. Rather, carry on with the truth which suits the documents. After the verification is done, the court will continue with the next procedures.

Getting discharged with the bankruptcy:

After all the verification procedure with the state, you will be asked to give a repayment plan which will be suitable for you and will be in accordance to your income. The debt repayment needs to be done and that is the reason the court will ask you to do this.

In accordance to your given plan, the court will come to a negotiation with the lenders and both parties will stick on a repayment plan which will be imposed upon you. You shall have to pay off the debts of the bad credit loans which have leaded you towards bankruptcy.

Also, the debt repayment is secured in nature for the lenders. In fact, the court will ask you to keep collateral with the debt amount. And in this way, the lenders will be kept in the secured zone. If you can not manage to pay off the debts according to the given plan, the lenders would snatch away the collateral stuff and extract the repayment out of unsecured loan.

In this way, the court settles down the matter of bankruptcy and finishes the things off. If you have any other reason apart from financial hardship, you will have to carry on with the chapter 13 discharge procedures.

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