If you are unable to pay your bills and feel like your debt is spiraling out of control, then Chapter 13 bankruptcy may help you and your family to take control over your finances.
What Is Chapter 13 Bankruptcy?
If you are unable to pay your bills and feel like your debt is spiraling out of control, then Chapter 13 bankruptcy may help you and your family to take control over your finances. Unlike Chapter 7 bankruptcy, where your assets are sold in order to repay your debts, a Chapter 13 bankruptcy will help you restructure your debt so that you can pay it off over the course of three to five years.
What Are The Benefits Of Chapter 13 Bankruptcy?
If you are having difficulty paying your bills due to overwhelming debt, there are many benefits that are worth considering. First, Chapter 13 creates an automatic stay against debt collections. This means that your creditors are no longer able to contact you. Filing Chapter 13 also stops foreclosures, repossessions, wage garnishments and other collection efforts.
In addition to stopping further debt collection efforts, Chapter 13 allows you to group all of your debt payments into one affordable monthly payment. The amount that you would repay over that time period is calculated based on your income level, how much debt they have, and the value that creditors of unsecured loans would have received if you had filed under Chapter 7 instead of Chapter 13.
The result is breathing room, giving you an opportunity to pay down your debt and achieve your financial goals. In the end, you could walk away from Chapter 13 debt free.
Am I eligible For Chapter 13 Bankruptcy?
To be eligible to file for Chapter 13 bankruptcy, the debtor must be able to prove that their debt is under the limits for filing. As of 2009, for example, the limit on secured debt was $1,010,650 and the limit on unsecured debt was $336,900. If debts exceed either of those amounts, the debtor may not be eligible for Chapter 13 bankruptcy.
Even if you just have questions about the Chapter 13 process, it is important to discuss your options with a bankruptcy attorney. Together, you and your attorney can look at your income, your assets and your debt to determine a path toward a fresh financial start.
Do I Need A Bankruptcy Attorney?
If you are considering Chapter 13 bankruptcy, then you should seek the advice of a Smithfield bankruptcy attorney. Your bankruptcy attorney will ask to see your pay stubs and debt related paperwork from creditors. Together, you and your bankruptcy attorney can look at your income and debt to determine if Chapter 13 bankruptcy is right for you.
If you have any questions about bankruptcy, or are considering filing for bankruptcy, contact Narron Wenzel, P.A. today to schedule a consultation with a qualified Smithfield bankruptcy attorney.