When your debt load becomes too overwhelming to handle, evaluating your financial situation and debt relief options is a necessity. Overwhelming debt is most noticeable when you start having difficulties paying your car and house payments because of too much debt on credit cards and when you start getting collection calls and or correspondence. While you may consider bankruptcy as a last resort solution, it could be exactly what you should do to protect your financial future. A Chapter 13 Attorney in Murfreesboro TN can help you through this process and reduce not only your debt load, but your stress load. The following will discuss the basics of Chapter 13.
What is a Chapter 13 bankruptcy? This type of bankruptcy is also known as the wage-earner’s bankruptcy. This is for individuals or self-employed business owners with a regular, steady income. It allows you to repay some or all of their debt over a period of three to five years at lower interest and payments. Certain cases may qualify for a longer payoff period if the court deems there is cause for it. It is based on the state’s median monthly income for the debtor. During this process, no creditors can contact you or try to collect any debt from you.
A Chapter 13 Attorney in Murfreesboro TN can help take the worst of the burden off your shoulders and help you with paperwork, advice, and representation during the bankruptcy process and discharge meeting. The process starts by filing a petition with the bankruptcy court in your own local area. You will need to provide your attorney with information like your assets and liabilities, your income and expenses, and any other relevant financial documentation. You will also be required to present a proof that you attended credit counseling and the debt repayment plan that was developed for you.
The benefits of Chapter 13 outweigh the overwhelming stress over your debt load and what you have to go through to get through this process. You can save your home from foreclosure, exponentially lower your credit card debt, and in many cases any penalties are removed from your loans or debts. Once your bankruptcy hearing is complete, you simply pay the assigned trustee the monthly payment and he or she distributes it among your debtors for you.