If you experienced having your wages garnished to pay off your debts or being threatened by your creditors, you may want to consider filing for bankruptcy protection. When you file for bankruptcy, your creditors won’t be able to harass you. Also, bankruptcy can protect your assets and wages. An experienced Chapter 13 bankruptcy attorney can help you understand how filing for Chapter 13 bankruptcy can be your best option.
Understanding Chapter 13 Bankruptcy
With Chapter 13 bankruptcy, you can reorganize your debt to make payments manageable. To start, you must file a bankruptcy petition and schedule a court appearance. This bankruptcy allows you to repay your debts over the course of 3-5 years. Because it does not involve immediately discharging debts, you do not lose assets like your home in the process. Filing for this type of bankruptcy may be your only option if Chapter 7 is not right for you. Your attorney will help determine your eligibility for Chapter 13.
How a Bankruptcy Attorney Can Help Your Case
A Chapter 13 bankruptcy attorney can help you decide whether to file for bankruptcy or explore other options. They can counsel you about the property you can hold on to, and offer input on the possible tax consequences you may face. They will help you decide which financial relief option is perfect for your situation.
Not Current on Car or Mortgage Payments?
Often, Chapter 13 bankruptcy offers the most benefits for those who own a car and a house since unpaid debt can put them at risk of repossession or foreclosure. With this type of bankruptcy, a debtor can make payments in a way that fits their financial situation. Also, they can pay back their unsecured debts, though the full amount may not be paid in full this way. By following your payment plan, you can discharge the rest of your unsecured debt. But, it is important to have some kind of dependable income to file for Chapter 13. This lets you show your ability to make payments.
If constant calls from creditors have you keeping your phone away from you, now is the time to take action. If you have been struggling to manage your debts and make ends meet, you must find out how Chapter 13 bankruptcy can help your situation. The same goes when you are worried about your wages being garnished. Your attorney can walk you through the debt relief options you can consider, so you can decide what option makes sense for you.