Yet if you file for a Chapter 7 personal bankruptcy order, this will liquidate the assets of your estate in order to pay your creditors. On the other hand, a Chapter 13 bankruptcy requires a disabled person to have regular income in order to make a set of plan payments to a Chapter 13 Trustee, which stretches over a three to five year period.
The Trustee is then responsible in distributing your payments to your creditors in order to pay off your debts. The next step is to file a bankruptcy petition with the bankruptcy court in your particular authority.
It is advisable to hire a bankruptcy attorney to assist your petition file with the bankruptcy court. A lawyer will also aid with formulating a bankruptcy plan for your assets and creditor payments.
It is imperative that you sit down with your lawyer to discuss a plan of action. A Chapter 7 bankruptcy may be over within just a few short months and may not even need long term financial planning.
Yet a Chapter 13 bankruptcy requires that a debtor make certain payment fees to a Chapter 13 Trustee which is taken from your bank account over three to five years.
The long term goal is for you to reach an order of discharge from the bankruptcy court, meaning your case has reached a successful end and all debts have been wiped out accordingly.
Please ensure if you are receiving SSI and/or disability payments that they are deposited into your bank account in an appropriate manner. This is because the bankruptcy court can ensure payments are taken out of your account in order to pay your creditors.