Many people who have a steady salary can become over-extended and unable to pay their monthly installments. Individuals and families in this condition are frequently unable to file for Chapter 7 bankruptcy. In other cases, a person may be reluctant to file for Chapter 7 bankruptcy because they may be forced to give up valuable possessions. Chapter 13 bankruptcy, thankfully for debtors, can often enable people who make consistent paychecks to maintain their possessions while paying their debts.
Reorganization of Debts Is Possible Under Chapter 13
Chapter 13 bankruptcy is a type of bankruptcy that allows debtors suffering financial difficulties to engage in a court-approved payment plan. A debtor submits a payment plan to creditors in which they make installment payments to creditors over a three to five-year period. As far as investments are received on schedule, a debtor's assets are safeguarded from lenders.
is that it can help homeowners avoid foreclosure. When a person files for Chapter 13, any foreclosure proceedings against them are halted and cannot continue during the repayment plan's duration. Furthermore, Chapter 13 may be able to lower payments on other forms of secured debts. In a Chapter 13 bankruptcy, debtors pay a bankruptcy trustee directly and have no interaction with their creditors.
The following sorts of collective action can be halted by filing for Chapter 13 bankruptcy:
● Bank account levies
● collection calls and mailings,
● And garnishments are all examples of debt collection methods.
How Can a Warren chapter 13 bankruptcy Lawyer Assist You?
People who are thinking about filing for bankruptcy are usually in financial distress. As a result, people may be enticed to save money by filing for bankruptcy alone rather than hiring an attorney. At first glance, this may appear rational, but it is typically not. Indeed, the federal government advises that applicants declare bankruptcy with the help of a qualified attorney.
● Collecting and organizing required documentation;
● Representing you at a creditors' meeting; and
● Ensuring that filing requirements are met;
● Forms that must be filled out;
● Creating a repayment plan that you propose
To schedule a consultation with a Warren Chapter 13 Bankruptcy Attorney, call today.
Chapter 13 bankruptcy is often beneficial to people who have a regular income but have trouble paying their financial responsibilities. This sort of bankruptcy can help you preserve your valuable assets from creditors while paying off your debts in many situations. The best approach to figuring out if