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How do you pay back debts when even paying the monthly interest is a challenge?
If you have asked yourself this question recently, it may be time to consider filing for bankruptcy.
You may have tried everything under the sun to avoid bankruptcy, all the while facing creditor harassment, wage garnishment, collection agencies, mounting credit card debt, and other challenges. In tough situations like this, filing for bankruptcy may be the right move for you, ending a dire situation that will likely only get worse.
Top 5 reasons a Chapter 13 bankruptcy may be the right choice for you:
We understand that filing for Chapter 13 bankruptcy is not always the easiest choice, but sometimes it is the best way when you need help to get back on track. Our professional and experienced Lakewood Chapter 13 bankruptcy lawyers are committed to guiding you through the entire process. We’re truly here to help you. Reach out to our firm today to schedule a free initial consultation with one of our Jefferson County debt relief attorneys.
Our Lakewood bankruptcy lawyers want to make sure you understand the entire process of filing for Chapter 13 bankruptcy, from start to finish, so you’ll know what to expect when it comes time to file. For that purpose, we have designed this website to give a brief overview of the timeline of a normal Chapter 13 bankruptcy case. Of course, each case is different. For more information about how Chapter 13 would fit in with your unique circumstances, please contact our Jefferson County chapter 13 bankruptcy attorneys.
The first step you’ll take once you’ve decided to file for bankruptcy in Lakewood happens before you file any bankruptcy paperwork. You’ll need to sign up for and take a credit counseling course. Completing this class is a mandatory part of filing for chapter 13 bankruptcy. After you have taken the credit counseling course, you will be issued a certificate of completion, which must be included in the paperwork you submit to the Federal Bankruptcy Court to file for bankruptcy.
The next step is compiling all of the necessary paperwork for your Chapter 13 bankruptcy petition. You may hear your Lakewood bankruptcy attorney refer to this paperwork as the bankruptcy Schedules, and the list of necessary forms can be found on the United States Bankruptcy Court-District of Colorado website.
Part of the Schedules you will submit for your Chapter 13 bankruptcy plan is your repayment plan. This plan will reorganize and consolidate all outstanding obligations into a single monthly payment. The amount of this payment is tied to your disposable income – your current ability to pay – and not the size of your debt. Certain types of debt, including tax debt, have “priority” and must be addressed before other debts.
If you’ve read this far and are starting to hyperventilate, please don’t freak out. While the amount of paperwork required to file for Chapter 13 bankruptcy is considerable and complex, your experienced Lakewood debt relief attorney has filled out and filed this exact paperwork so many times, it’s practically printed in their brains. Remind yourself that you aren’t going to have to go through this alone, you’ll have a knowledgeable Chapter 13 legal professional on your side.
Once your repayment plan has been submitted to and approved by the court, you will need to continue to make your monthly payment over a period of three to five years. During the duration of your bankruptcy case, a legal provision called the automatic stay will be active, which stops creditors from trying to collect from you, halts vehicle repossession, and can even stop foreclosure.
The automatic stay also prevents creditors from calling your home or garnishing wages from your paycheck. That means that thanks to the automatic stay, so long as you continue to make your monthly payments and honor the terms of the plan, you can potentially receive up to five years of protection from negative collection actions.
Completing your repayment plan will generally allow you to discharge most remaining unsecured debts. This means you will be able to eliminate credit card debt, medical bills, personal loans, and unpaid utility bills. If you can demonstrate undue hardship, you may also be able to discharge any remaining student loan debt.
Though you cannot eliminate all types of debt through Chapter 13 bankruptcy, your plan can be structured to focus on priority debts you cannot discharge. The elimination of unsecured debts can also provide increased financial flexibility and resources to catch up on other obligations.
It’s important to note that, with Chapter 13 bankruptcy, if you have secured loans such as a mortgage or car loan, you will need to continue to pay the current loan payments in addition to your Chapter 13 bankruptcy repayment plan payments. While creditors cannot repossess or foreclose on your car or home during Chapter 13 bankruptcy thanks to the automatic stay, if you don’t keep up with your payments during your repayment period, your creditors can pursue foreclosure or repossession immediately after your Chapter 13 bankruptcy case is over.
The last step before your Chapter 13 bankruptcy is completed is another required educational course. This is in addition to pre-bankruptcy credit counseling, and it’s called a debtor education class. After you file for bankruptcy, but before your debt(s) is discharged, you are required by law to complete pre-discharge debtor education. Just like the credit counseling course, once you have completed the debtor education course you will receive a certificate which must be filed with the bankruptcy court in order for your case to be closed.
Our Lakewood Chapter 13 bankruptcy attorneys are dedicated to helping you escape from overwhelming debt. If you’re trying to decide whether Chapter 13 bankruptcy is the right choice for you, our experienced and knowledgeable Jefferson County debt relief lawyers can consult with you on your financial situation and help you make an informed decision.
If your financial situation is quickly deteriorating because you cannot keep up with your bills and debt is quickly mounting, then now is the time to consider filing a Chapter 13 bankruptcy.
Filing for bankruptcy may not be your only option, but it can help you liquidate your debts, manage your bills, and get a fresh start with your finances.
Our Lakewood Chapter 13 bankruptcy attorneys understand that being in debt can be stressful and that the bankruptcy code can be complex, which is why we offer free consultations for new clients. During this consultation, our Lakewood debt relief attorneys will talk with you about the debts that you owe, so that we can determine whether or not Chapter 13 bankruptcy is a viable option.