When someone loses their job, one of the consequences is often the loss of health insurance. Even when people attempt to continue health insurance payments, at some point it often becomes impossible. It’s a house of cards, and one by one the cards fall. A heart attack or other sudden illness can cause the last card to fall. The house is in foreclosure and the other creditors call constantly. The hospital has turned their bill over to collections and they are threatening to sue. There don’t appear to be any options left.
Even when someone finds a new job, the new salary is often much lower. Losing their home is what many people dread the most, especially when they have substantial equity. They considered it their retirement nest egg, planning on the home to be paid off. By the time they have fallen over 90 days past-due, it’s seldom possible to refinance with the bank. Their bills exceed their income; it seems impossible to ever catch up.
Chapter 13 bankruptcy was designed to help people who have a steady income but are drowning in debt. It will stop foreclosure proceedings on their home or repossession of their car; this will allow them to make monthly payments while catching up on the past-due amount. A 3-5 year debt repayment plan will be drawn up and presented to the court and creditors for approval. Once accepted, the debtor will make one monthly payment to the court who will distribute it to the creditors. At the end of the repayment plan, any debts that remain and are eligible for discharge will be cancelled.
Sean I. Koplow, P.A has helped thousands to have a fresh start by successfully finishing the bankruptcy proceeding. He has focused his practice on bankruptcy for over 15 years, becoming well-known for helping those who have been beaten down by circumstances. Mr. Koplow received his Juris Doctorate from Brooklyn Law School in 1993 and immediately went into practice in New York. After moving to Florida, he decided that he wanted to practice consumer law and have a positive impact on the lives of people in difficult situations. As a practicing Bankruptcy Attorney in Royal Palm Beach, he also assists clients with help in avoiding foreclosure, loan modification and debt relief. Anyone who is facing foreclosure and needs to find a bankruptcy attorney should consider contacting Sean I. Koplow for a free initial consultation.