Think Of Chapter 13 Bankruptcy As A Way Of Taking Back The Reins
If you are overwhelmed by crushing debts but do not qualify for a Chapter 7 bankruptcy – or if a Chapter 7 is not in your best interests – Chapter 13 bankruptcy may be the way to go.
Take the government-mandated means test as a starting point. If your family’s income is above the median income in Mississippi and you cannot reasonably repay your current debts, you may opt to file a Chapter 13 bankruptcy. Contact Saxton Law, PLLC, in Jackson, Mississippi, to discuss this debt relief option.
Get Personalized Answers To Questions Such As These
It is natural to have a long list of questions when you are considering filing for bankruptcy. Below are some of the most basic and common questions that attorney Randall Saxton hears.
What is Chapter 13 bankruptcy?
In a Chapter 13 bankruptcy, your finances will be reorganized under the direction of a trustee with the bankruptcy court. You can catch up on secured debt such as mortgage and car payment arrearages while also repaying at least some of your unsecured debts, such as credit card balances and medical debt. Your bankruptcy fees will be included in your affordable monthly payments.
What are the benefits of Chapter 13?
Some reasons to choose Chapter 13 bankruptcy may include the following:
- With a Chapter 13 repayment plan, you can stop foreclosure of your home and repossession of your car.
- You may be able to retain your home and protect large home equity that might be at risk in a Chapter 7 bankruptcy or if you did not file for bankruptcy.
- When you file for Chapter 13 bankruptcy, creditors cannot continue to try to collect from you. Rather, they will interact with the bankruptcy trustee. The trustee will collect affordable monthly payments from you and distribute appropriate amounts to your creditors.
- Interest rates will likely be greatly reduced or even eliminated.
- You may be able to repay arrearages for nondischargeable debts such as student loan debt, child support, judgments from lawsuits and taxes affordably and without penalties over several years.
- At the end of your repayment plan, remaining unsecured debts may be discharged.
Issues involving your spouse and/or business may indicate that Chapter 13 as the most appropriate debt relief method for you.
What happens to my assets in a Chapter 13 bankruptcy?
During a Chapter 13 bankruptcy, your assets will not be liquidated as in the case of a Chapter 7 bankruptcy. If you are able to keep up on payments for your house, car and other possessions with secured loans, you should be able to keep those large assets.
Is Chapter 13 Bankruptcy Right For You? Ask Attorney Saxton.
You no doubt still have many questions about Chapter 13 bankruptcy. You may wonder about alternatives to this form of debt relief. A free consultation is the best way to get personalized advice.
Saxton Law, PLLC, is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.