Bankruptcy laws are designed to help people who are struggling to have their debts paid up. In the case of a Chapter 13 Bankruptcy case, these laws can even stop foreclosure and give the debtor some space to organize their finances enough to be able to pay the debt.
Chapter 13 bankruptcy is different from other types like Chapter 7 because assets aren’t being liquidated to pay for debts. This type of bankruptcy allows for debts to be paid back over time under a court order. Once a bankruptcy case is filed in court, the court orders the creditors to stop all the hounding and barrage of phone calls asking for their money.
How Chapter 13 Bankruptcy Works
When a Chapter 13 bankruptcy case is filed, the court appoints a trustee to oversee the repayment plan. Under this plan, some of the debts owed will be fully paid back, some will be partially paid back, and others will be forgiven completely. If this plan is adhered to, after a 3-5 year period, the court will discharge the remainder of the debts.
If it so happens that a filer has only unsecured debts, like credit cards, personal utilities, or personal loans, then Chapter 13 bankruptcy makes a provision for the filer to pay back only what they can afford based on their income and household expenses.
Engaging the help of a seasoned bankruptcy lawyer can help to create a Chapter 13 bankruptcy plan that works. This is especially necessary because there are issues that can come up in a Chapter 13 bankruptcy case. Issues including motions to lift the bankruptcy protection, or to dismiss the case.
Finding An experienced Chapter 13 Bankruptcy Lawyer In Greenbelt, MD
Filing a Chapter 13 bankruptcy case has many benefits which include having the option to pay whatever you can afford, have your debts discharged, and also to be able to save your home. But all of this can only be possible if you have the right lawyer working with you
If you are looking for an expert and experienced bankruptcy lawyer in the Greenbelt, Maryland region, you should check out the guys at Phillips Law Offices. They have been around for 12 years, during which time their consumer and corporate bankruptcy services have helped business owners and individuals to start afresh with their finances.
To book a consultation with an expert bankruptcy attorney at Phillips Law Offices, visit their official website.