Consumers facing an overwhelming amount of debt need to hire a Chapter 13 Bankruptcy Attorney in Lake Worth. Chapter 13 offers a structured repayment plan to assist in debt settlement. All debts that are eligible are included in this plan. Any debts that qualify for discharged are addressed during the bankruptcy hearing. Discharge implies that the debts are settled by other means. Once discharged, the consumer is no longer accountable for the debt. Credit card accounts are often eligible for this dismissal.
Can You Afford Chapter 13 Bankruptcy?
To file a bankruptcy claim, consumers pay an upfront fee. The basic filing fee is $274 or higher and non-refundable. It does not include fees for legal services or the attorney’s costs. Approval of the bankruptcy claim is not guaranteed.
What are the Benefits of Bankruptcy?
Bankruptcy prevents creditors from taking legal action, such as foreclosure, repossession, and debt collection lawsuits. The owner retains the right to utilize their property. The consumer is still obligated to maintain insurance on the property.
The consumer is responsible for one monthly payment instead of several. Debts include in bankruptcy do not incur further late charges or finance fees. Payments are applied to the principal and interest of the debt as a whole.
Low-income consumers who become unable to complete their plan due to job loss are eligible for a hardship discharge. Median to high-income consumers qualify for discharge if they lost their job due to the company’s closing. When discharge is denied, the consumer can convert to Chapter 7, after meeting eligibility requirements.
What are the Drawbacks?
Consumers are required to attend a credit-counseling course, before the claim is filed. The consumer cannot acquire new lines of credit. Affordability is required for approval. Income levels beyond the state median require five-year plans. Chapter 13 bankruptcy remains on the consumer’s credit report for seven years and significantly decreases their credit rating.
Who Provides Credit Counseling?
A Chapter 13 Bankruptcy Attorney in Lake Worth can provide credit counseling for the consumer. An attorney is an invaluable resource for state-approved counseling programs. If he or she manages a program, the consumer can enroll to fulfill the credit-counseling obligation.