A chapter 13 bankruptcy provides restructuring of the existing debt to make the repayment of debt manageable. The debtor presents the creditors with his plan of paying off the debts in 3 to 5 years from his/her future income.
Legal services by top bankruptcy lawyer are highly beneficial for people who are keen to manage and pay off their debts early. A chapter 13 type of bankruptcy can prevent the sale of your assets, including your home, help pay back t, and stop the accumulation of interest on the tax debts. Creditors also willingly work on chapter 13 as it allows them to recover their funds.
1. Highlight features
Chapter 13 Bankruptcy has its features that may appeal to some like it offers an opportunity to prevent foreclosure of a home if the debtor has a regular income. It facilitates adjustment of relationship with creditors to retain the property. It also permits the filing of a plan agreeing to pay off a percentage of the debtor’s future income, for payment to creditors, to the trustee.
One can also reschedule secured debts, other than a mortgage for a primary residence, extend them throughout chapter 13 and lower the monthly payments. Bankruptcy cases come under the verification of Chapter 7 of the law. This is also known as ‘’ fresh start bankruptcy’’ due to obvious reasons that it can tag along without any warning.
Chapter 13 is essentially beneficial for people who have equity in some property or home and want to maintain it. It is created for people with regular income who plan to finish off their debts but cannot meet the conditions demanded by the creditors. It requires a feasible repayment plan, and the chapter 13 attorney can create and propose the same.
2. Bankruptcy Lawyer Works for Your Benefits
Bankruptcy is a legally declared or recognized condition of insolvency of a person or an organization, an individual or a business files for bankruptcy when their finances become unmanageable.
They are in no position to pay off the debts. Those who believe that their financial position has degraded and could no more pay off their debts file for bankruptcy in court to make a settlement with their creditors, and a abogado de bancarrotas superior en Brickell could assist you in filing for it. It works with the change of relationship with banks to hold the property.
It additionally allows the documenting of an arrangement consenting to take care of a level of the borrower’s future pay, for instalment to loan bosses, to the trustee. Likewise, one can reschedule obligations, other than a home loan for the main living place, expand them all through section 13 and lower the regularly scheduled instalments.
3. Follow a bankruptcy lawyer to claim successfully
Every bankruptcy case is different from others, depending on their conditions. People should not take the risk of filing their case independently as a little misstatement could lead to dismissal of your case and could charge against you for misguiding the court and wasting their time.
A bankruptcy lawyer would hold your hand throughout the process, preventing you from going wrong in any step.
A lawyer would guide you about which beat would be best suited for you among chapter 7 and chapter 13 of filing for it.
Chapter 7 would provide you debt relief in four to six months, and debts like credit card loans, medical bills, payday loans etc., are settled, leading you towards a fresh start. Chapter 13 creates an interest-free repayment plan where you pay monthly to the trustee who settles your debts, providing you relief in about 5-6 years.
Top Bankruptcy lawyer manages your financial crisis, providing you with a fresh start and helps you to keep your assets safe, protecting you from foreclosure and harassment by creditors.