Chapter 13 Can Solve Money Troubles

Chapter 13 Can Solve Money TroublesIf you are facing financial strain and regular calls from creditors, you might find yourself in unnecessary stress. Finding a solution to financial hardship can often be confusing and there’s no set roadmap for everyone. Dealing with these financial issues and making sure that your debt does not become a long-term problem can be important for any family in Florida. Rather than establishing a temporary truce with your creditors by taking out a personal loan or going deeper into debt, it could be wise to establish a more long-term solution. Here are some ways Chapter 13 can solve money troubles.

Chapter 13 bankruptcy could be the best way that you can handle financial issues head-on and get a fresh start on your future finances. Working with a chapter 13 bankruptcy attorney can take you through the process of filing as well as make sure that you are on the right path to negotiating with your creditors. 

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is also known as re-organizational bankruptcy. This type of bankruptcy allows families or individuals who are indifferent financial circumstances to eventually pay back their debt over a series of years in a settlement plan. Chapter 7 bankruptcy ensures that debt can be effectively erased but this type of bankruptcy may not be possible for every family based on their financial needs. 

A person can fall into financial hardship due to a number of potential factors. Families can often experience these difficulties after a member of the family loses a job, after a divorce occurs or after a family starts to rack up personal debts. Establishing a repayment plan that it family can use to pay back their debt over a series of years can make sure that the worst-case scenario can be prevented. 

If the family continues to live in financial hardship they could face the chance of foreclosure on their home, the seizure of assets and constant pounding from their creditors. 

Repayment Plans Under Chapter 7

Typical repayment plans for chapter 13 bankruptcy take around 3 to 5 years. During this period of time, a family will be able to access their necessities as well as keep their assets which are qualified under the bankruptcy agreement. A percentage of that total debt will be approved in the plant and payments will need to be made to an appointed trustee that will be in charge of distributing the funds to each individual creditor. The terms are often negotiated and this can typically require ongoing paperwork and filing before the terms are agreed to. Working with a legal team can be one of the best ways that you can to have an advocate for individual creditors and that there can be an agreement under Chapter 13 bankruptcy filing. 

Chapter 13 Is Not A Solution For Everyone

Chapter 13 bankruptcy does have its own approval process and it is not a process that is approved for everyone. A person that has agreed to chapter 13 bankruptcy must also abide to their repayment schedule or there is a chance that their case could be opened up and some of their assets may be seized. For individuals that want to protect their assets and for individuals that are unable to qualify for Chapter 7 bankruptcy, chapter 13 bankruptcy can be a wise option for protecting essentials. If you are unable to repay your debts and you need access to a proper repayment agreement, working with a chapter 13 bankruptcy attorney can be an excellent way that you can overcome these tough financial times.

Why Working With An Advocate Can Be Easier

Working with an attorney can often be an easier way to negotiate your settlement. Attorneys will be able to establish an automatic stay with your creditors so that you won’t have to face the same number of phone calls or ongoing requests to pay the money back. As long as you stick your repayment plan, you will face zero harassment from your creditors or ongoing issues with creditors contacting you in order to access your debts. A chapter 13 bankruptcy attorney will also be able to make sure that you are filling out all of the applicable paperwork and submitting all required forms. The requirements for Chapter 13 bankruptcy do change regularly to making sure that you are working with someone that’s knowledgeable in bankruptcy claims can be wise. Initiating Chapter 13 bankruptcy with the help of an experienced negotiator can even help you to hold on to more of your assets and establish a payment plan that will be easier to manage. 

If you are interested in working with a professional chapter 13 bankruptcy attorney contact the team at Bruner Wright today. We have over 30 years of experience in chapter 13 bankruptcy claims throughout Florida.