Chapter 13 Bankruptcy: What’s The Plan?
It always help to have a plan. Plans are are a good idea for relationships, business, and life in general. When filing Chapter 13 bankruptcy, a plan is not only a good idea, it’s required by law.
As an Orlando bankruptcy lawyer, I help my clients formulate a Chapter 13 payment plan to accomplish their financial goals. Depending on my client’s situation, through their payment plan, which can usually last anywhere from 36 to 60 months, I can help them catch up a mortgage payment, eliminate a second mortgage altogether, wipe out credit card debt, save money on a car loan, or handle IRS debt.
The Debtor, the person filing the Chapter 13 bankruptcy, has to file a payment plan at the outset of the case. The plan’s job is to tell everyone what goals the Debtor wants to achieve during the time the Debtor is in bankruptcy. The plan also instructs creditors how they will be dealt with, and tells the Chapter 13 Trustee who to pay and how much to pay each creditor.
There are many choices to be made by the Debtor when developing a plan at the beginning. Many times, I see Debtors in Court who have not constructed a plan capable of being understood by creditors or the Trustee. Sometimes, as a result, the Debtor’s case can be dismissed. When this happens, the Debtor will have a bankruptcy on his credit report, but none of the benefits he could have received had the plan been done correctly.
Hiring an experienced Orlando bankruptcy lawyer who has successfully represented clients through the Chapter 13 process in Orlando is a must if you want a smooth ride through the case. In the vast majority of cases I file for my clients, so long as the Trustee payments are being made, my clients never have to appear in Court. More importantly, my clients accomplish the goals they set out to achieve at the beginning of their case.
Having a plan is important, especially in Chapter 13 cases. Having a plan that successfully navigates you through the case and relieves you from overwhelming debt is even better.
Looking for help with filing Chapter 13 bankruptcy, then visit www.khuntergoffpa.com to find the best Orlando bankruptcy lawyer for you.
Frequenty Asked Questions About Bankruptcy
Filing for bankruptcy is an important and serious decision to make. Here are a few frequently asked questions when it comes to filing bankruptcy.
Will I stop getting harassed by creditors after I decide to file?
Handling the continuous onslaught of phone calls and voicemails from creditors can be stressful. Fortunately, bankruptcy gives you the ability to stop the creditor harassment. If you decide to move forward and file for bankruptcy, your filing will result in an automatic stay order. This order will make it illegal for creditors to call you anymore. They will no longer be allowed to collect on your debt. This is one of the benefits of filing.
What is a debt discharge in bankruptcy?
A debt discharge wipes out all your previous debts owed. When you file for Chapter 7 bankruptcy, assuming you are eligible to do so, you will get a debt discharge. This means that you will not have to pay off your previously owed debts. It is important to know that not everyone qualifies for Chapter 7 bankruptcy. The best way to understand if you qualify and to investigate your other options is to speak with a bankruptcy lawyer.
Does filing for bankruptcy ruin my credit?
Often times people that decide to file for bankruptcy have problems with their credit before filing. Bankruptcy can offer a great way to take back control over their personal finances. In fact, many times credit scores will improve over time once bankruptcy is declared.
Filing for bankruptcy will impact your credit report. The bankruptcy filing can stay on your credit report for up to 10 years, although sometimes less than this. While it\’s listed on your report, it can have a negative impact. Your situation will be unique though. Things such as your credit history, the type of bankruptcy you file for, your overall financial situation, and debts will play a role.
You may be considering bankruptcy to resolve a hopeless financial situation, or to delay debt-collection for a period of time to allow for financial reorganization. Speaking with a bankruptcy lawyer MA can help you resolve your financial issues. If you are considering bankruptcy in Massachusetts we can help.
5 Common Bankruptcy Myths: Things To Consider When Filing For Bankruptcy
Misconceptions about bankruptcy and what it means to file are prevalent. What I’d like to do is discuss 5 of the most common misconceptions people have about the process.
Here are 5 prevalent misconceptions regarding filing for bankruptcy.
1. When I declare bankruptcy, everyone I know will find out. This simply isn’t the case. Outside of the individuals you choose to tell, most people will never be the wiser. Although filing for bankruptcy is a public legal proceeding, unless you are famous or prominent, it won’t be put out on the news.
2. Everything I have will be gone. This is often the deal breaker for people who could really benefit from filing from actually doing it. Every state has exemptions, although they vary from state to state, that protect certain assets, such as your house, clothes, retirement savings, and your car (up to a certain value). If you have a mortgage or a car loan, you can keep those as long as you keep making the payments.
3. My credit will be destroyed forever and I’ll never get it back. Not so. You will be offered credit again, albeit at higher interest rates. Large purchases should be made prior to bankruptcy due to the higher interest rates. Getting loans for things like a car or house may prove more difficult. However, you will be able to get credit again.
4. The bankruptcy process is a long and hard one. That isn’t true. The process isn’t that difficult to go through and with the help bankruptcy lawyers in Michigan, you will find it isn’t that bad.
5. I’m a loser if I file. There are many many people that file for bankruptcy. Most often it is for reasons such as divorce, job loss, medical bills, etc. They simply can’t keep up with the payments. This does not mean you are a loser, but simply in a tough spot.
If you are considering filing for bankruptcy, be sure to connect with bankruptcy lawyers in michigan to assist you with the process.
When you are facing the prospect of filing for bankruptcy the next step is to discuss bankruptcy lawyers in michigan. Ardelean & Dunne are experienced bankruptcy lawyers in michigan. They can help to resolve your bankruptcy issue and get you on the right track again.
Bankruptcy: Top Five Reasons
A legal declaration that an individual or business can no longer pay their debts is known as bankruptcy. There are many reasons why people would declare bankruptcy, and here are some of the top reasons:
1. Job loss – One of the most common reasons people file for bankruptcy is because a job loss. The current dire state of the economy has made a lot of people to leave their work, and therefore leaving them incapable of providing for themselves and their family. A job loss may also mean losing insurance that would\’ve been provided by their employer.
2. Medical bills – Sometimes, loss of insurance, a terrible accident or unexpected illnesses can be enough reason for a person to file for bankruptcy. Today, medical costs are really expensive and could pile up to inconceivable amounts. Filing for Chapter 7 Bankruptcy can greatly reduce or even completely eliminate these debts.
3. Preventing repossession of properties – If your home, car, or other highly valuable possession of yours is being repossessed, filing for Chapter 13 bankruptcy could force the creditor to return said items to you. After this, your past missed payments will be consolidated into your bankruptcy plan. You will no longer pay to your creditors, but to your trustee instead. In turn, they will pay the finance company for you.
4. Stop home foreclosure and catch up on missed mortgage payments – Filing for Chapter 13 Bankruptcy won\’t eliminate your property mortgage, but it will stop foreclosure before bidding or sales can occur. This can then let you to repay the mortgage amount left (also called mortgage arrears).
5. Stop harassing calls and behavior from creditors – A lot of times, creditors tend to do debt collection in an unpleasant manner. Their abusive and oftentimes annoying behavior is very unnecessary, and in fact, unethical. Filing for bankruptcy can stop the demands of many creditors, thus ending the many harassing phone calls and bad behavior.
There are plenty of other reasons to file for bankruptcy. Of course, the best way to handle whatever bad financial situation is to consult a lawyer.
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