All sorts of circumstances can lead to the possibility of seeking bankruptcy protection. Unexpected medical bills, a job loss or extended layoff, and a number of other issues can undermine the ability to honor debts that were secured with the intention of repaying them in full. Before deciding how to proceed, it pays to consult with a Chapter 13 Bankruptcy Lawyer and explore how this particular option has helped a number of people.
What is Different About a Chapter 13?
For those who do not qualify for a Chapter 7 action, a Chapter 13 is often a possibility. This approach basically creates a situation in which the court takes on the responsibility of mediating terms between the debtor and his or her creditors. Payment arrangements are made and approved by the court that ensure that the balances owed are repaid over time. The debtor agrees to having the court garnish his or her wages for a set amount each pay period. The funds are forwarded to the court, which then distributes them to the creditors. Over a period of a few years, those debts are paid in full.
Are There Benefits to This Arrangement?
As the Chapter 13 Bankruptcy Lawyer will explain, choosing this action does provide specific benefits. The most immediate benefit is that the debtor no longer has to worry about collection calls and possible further legal action by creditors. Another benefit is that the amount of the garnishment allows the debtor to retain enough net income to continue paying for essentials like food, clothing, and shelter. A third advantage is that the debtor has the satisfaction of knowing that those debts are being settled and in time every creditor does receive full compensation.
Constantly worrying about out of control finances has an adverse effect on every facet of life. That includes the health of the debtor, as well as the ability to perform efficiently on the job. For people who are facing a great deal of debt and are not sure how to manage it effectively, talk with a lawyer with Law Offices of Larry Bruce Goodman. In a short amount of time, what seemed like an insurmountable problem will have a solution.
