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If you’re having trouble with mounting bills, but you are confident that you could catch up with debt if given a little help, you may be a good candidate for Chapter 13 bankruptcy. Under this type of financial protection status, individuals are granted an extension period that lets them pay off debt gradually. If this sounds like a good option for you, the experienced bankruptcy attorneys at Chávez Law Group can provide all the details on how to go about filing.
About Chapter 13 Bankruptcy
Chapter 13 helps you get ahead of your debt by essentially allowing you to push the “pause button” on your outstanding debts. After a filing process, you are required to follow a specific debt repayment plan, usually over the span of three to five years. As part of your agreement, you will be asked to attend credit counseling sessions to help prepare you for future financial challenges and educate you on the healthy ways to manage debt. Generally, the repayment schedule is based on your current income and your total outstanding debt. You will make payments to a court trustee, who will then disburse the funds to your creditors.
Chapter 13 is a good option for people with assets as the result of a loan that is still in progress. With the Chapter 13 repayment feature, you may be able to keep assets like your home or car while still paying some portion of the loan. Foreclosure protection is one of the major benefits afforded under Chapter 13, but only if you are able to continue making mortgage payments.
Chapter 13 differs from Chapter 7 in that you must have a stable income that allows for repayment. The filing process requires you to list out all of your debts to be reviewed by a court trustee. Your creditors are presented with the information regarding your repayment terms and can agree or disagree. Assuming your creditors accept the repayment plan, you are bound by law to meet those monthly payment obligations without fail. Please note, however, that your attorney may include language in your agreement that allows for suspension of repayment in the event of illness, job loss, or other serious event that could affect your financial capabilities.
The Role of a Bankruptcy Lawyer
The bankruptcy lawyers at Chávez Law Group can help you with all of the steps involved in filing for Chapter 13 bankruptcy, including completing forms correctly and on time, gathering proof of income, credit card statements, invoices, and other important documents, and making changes to your bankruptcy terms as needed. Once you are granted Chapter 13 bankruptcy status, you may need the help of a lawyer to make changes to your repayment plan.
If you are having a tough time with mounting debts, let a skilled bankruptcy lawyer guide you through the steps of the bankruptcy process and help you get a second chance. To learn more about Chapter 13 bankruptcy and all your options for financial relief, please contact Chávez Law Group today.