Upside down mortgages, mounting credit card debt, and unforeseen medical bills are all major problems that plague countless individuals and families every single year. Though a chapter 13 bankruptcy requires the payoff of some outstanding debts, it can also provide an individual with a way to achieve a new start.
When is it time to contact a Chapter 13 Bankruptcy Attorney? Upside down mortgages, mounting credit card debt, and unforeseen medical bills are all major problems that plague countless individuals, families and businesses every single year in the United States. Because of this, sometimes bankruptcy may be the only choice left for some people.
Many people may not be fully aware of this, but the Federal Government provides protection to those who can no longer afford to pay their debts. Bankruptcy remains one of the most affordable and quickest ways to help stop collection efforts and wipe out your debts, while also helping protect your most valuable assets.
In a Chapter 13, this filing acts as reorganization of an individual’s outstanding debt obligations and allows your financial situation to stabilize. A Chapter 13 bankruptcy often remains open for 36 to 60 months depending on the individual’s personal financial circumstances and are usually concluded within 4-6 months from the initial time of filing.
How Chapter 13 Bankruptcy Works
Believe it or not, each year in the United States, hundreds of thousands of people file either a Chapter 7 or a Chapter 13 bankruptcy. Unlike a Chapter 7, a Chapter 13 bankruptcy is for individuals who earn consistent income. After making payments for the predetermined period of time, your remaining debts will be discharged.
- Halt foreclosures
- Stop repossessions
- Prevent utility shut-offs
- Stop creditor harassment
Who Qualifies For a Chapter 13 Bankruptcy
In today’s ever-changing economy, serious debt problems can happen to just about anyone. You may feel like you’ve completely run out of options, but there are real solutions available for issues just like yours. When it comes to filing a Chapter 13 bankruptcy, there are certain points that individuals must have in order to qualify.
- Have a regular income
- Must be eligible to file the current tax filings
- Have filed for Chapter 13 in the past two years or Chapter 7 in the past four years
- Unsecured debt cannot exceed $394,725 and secured debt cannot exceed $1,184,200
Advantages of Filing a Chapter 13 Bankruptcy
The decision to file bankruptcy can be a difficult one. Despite some of its known disadvantages, filing for bankruptcy can very well be the best course of action in many cases. Declaring bankruptcy could potentially save you from losing your home, your car, and other valuable belongings that are important to you and your family.
- Saves your home from foreclosure
- Removes a 2nd or higher mortgage
- Allows you to pay what you can afford
- Discharges debts you do not pay in full
Talk to an Experienced Bankruptcy Attorney Today
Bankruptcy could be the fresh start you have been searching for. But without the proper legal guidance, you could very well end up in a situation that creates more of a burden and doesn’t actually solve your underlying debt issues.
Contact the professional Chapter 13 Bankruptcy Attorney at Dennery Law today to learn more about whether filing a Chapter 13 bankruptcy is the right option for you. Are you ready to get started on your journey to financial freedom?