If a person finds themselves in over their heads with debt, it is important they understand the legal help that is available. Debt can easily become overwhelming and lead to great levels of stress. Thankfully, a lawyer can help an individual file for chapter 13 in Jonesboro, GA.
How Does Chapter 13 Work?
When a person has mostly secured debts, such as a mortgage bill or car note, this type of bankruptcy can be beneficial. This will allow a homeowner to avoid foreclosure, as long as they act as quickly as possible. Chapter 13 can also stop the collection activity of all creditors so the debtor is no longer burdened with these sometimes harassing forms of communication.
To file for chapter 13, a person will need to meet with a lawyer. The lawyer will provide their client with information on the laws regarding chapter 13 in Jonesboro, GA. All of a debtor’s debts must be provided to the lawyer. These will be listed in the bankruptcy documents so the creditors are ordered with a cease and desist.
Before a chapter 13 bankruptcy can be approved, the lawyer will need to help their client draw up a proposed structured repayment plan. This plan maps out the plan for repayment of all debts owed by the debtor. A person must make sure they stick with their payment plan and make their court payments on time so their bankruptcy can remain in good standing and not be dismissed.
How Long Does Bankruptcy Last?
A person will be given a certain period of time to pay off all of their debts. Most people are given between three and five years, depending on the amount of debt they owe and their monthly income. A person must have a reliable income before they can be approved for this bankruptcy. That is why it is often referred to as the ‘wage earner’s bankruptcy’.
With bankruptcy, individuals can overcome their mounting debt and find freedom from their financial woes. For more information on how a lawyer can help those in debt, visit Chriscarouthers.com. If you would like to schedule an appointment, call today.
