Through the fall of the economy in recent years, many people found themselves suddenly without a job, or having to take a greatly reduced pay rate in order to keep the job. For many, this meant that their finances were not able to be completely covered each month. Even trying to make the minimum payments can be difficult in a situation like this, and so many people look for an alternative to help them get out of debt. One of the ways you can clear your debt and work on rebuilding your finances with a clean slate is by using a Chapter 13 Attorney to help you file for bankruptcy.
Chapter 13 is a type of bankruptcy that is for both businesses and individuals alike. Many times, individuals choose Chapter 13 bankruptcy because it allows them to keep all of their assets, while still paying off the debts they owe and working towards a clean slate. A Chapter 13 bankruptcy will begin with a consultation with a Chapter 13 Attorney, who will review over the person’s current income, debts, and other financial information. He will make sure that the person qualifies for Chapter 13 bankruptcy, and then will begin working on a plan for the bankruptcy.
In a Chapter 13 bankruptcy, the person will have their debts consolidated into one larger debt. Their attorney will be able to work with the creditors to come up with a settlement amount the creditor is willing to accept, which is often much lower than the full amount of the debt owed. These will all be added together to make the final amount that needs to be paid, and then it will be split into monthly payments. These monthly payments are often lower than the payments the person was previously making, and so are easier to afford. This is the plan that will go before a judge and, once approved, the person can begin working to pay off their debts.
A Chapter 13 bankruptcy, once approved by a judge, will take three to five years to complete. At this point, all of the debts will have been repaid and the person will enjoy much lowered bills for the future. If you think that this could be a good option for you and you’d like to learn more, call a local bankruptcy lawyer and set up a consultation visit. Get more information here!