Top 5 Reasons People Filed Chapter 13 Bankruptcy in 2017
Many people today are suffering from financial problems. Bills are piling up quickly, and individuals do not have the money to make the payments on their credit cards, medical bills and/or personal loans. Consumers get constant calls from creditors demanding payment, and they just need some relief. In some cases, the best option is to file for Chapter 13 bankruptcy. It is best to seek out the professional opinion from an experienced attorney, such as those at Zellar & Zellar, Attorneys at Law, Inc.
Chapter 13 Bankruptcy allows debtors to come up with a repayment play to pay off a portion of their debt. If a person has regular income, the proposal will allow them to make installment payments to creditors have a period. Debtors cannot be contacted by debt collection agencies while in bankruptcy, so it will help relieve some stress from the constant collection calls. In 2017, there are numerous reasons why people filed for Chapter 13 bankruptcy. Here are the top 5 reasons why people filed for Chapter 13 Bankruptcy in 2017.
1. To halt ongoing collection efforts: When a person files for Chapter 13 Bankruptcy, all collection efforts must cease. This includes lawsuits, foreclosures, and wage garnishments. By filing for Chapter 13 Bankruptcy, debtors could be able to save their home from foreclosure, so long as the case is filed before the Sheriff’s Sale.
2. Obtain a fresh start: For whatever reasons, many people make huge financial mistakes that can put a major strain on an already tight budget. It is so easy to get into debt; however, it can be almost impossible for individuals to get out of debt. By filing for Chapter 13 Bankruptcy, debtors can have the opportunity to start over. After the Chapter 13 plan is completed, individuals can start over and hopefully make better decisions.
3. To eliminate debts that cannot be discharged with Chapter 7 Bankruptcy: Individuals can find a way to pay tax debts, legal debts, or student loans. This is known as the Chapter 13 “Super Discharge.”
4. More lenient qualifications: Chapter 7 Bankruptcy has certain requirements that people must meet, such as specific income requirements, while Chapter 13 bankruptcy has less stringent requirements. Meeting the requirements for Chapter 7 Bankruptcy are much stricter. With Chapter 13 Bankruptcy, there are no maximum income requirements, so debtors can qualify easier.
5. No liquidation requirements: With Chapter 7 Bankruptcy, people might be required to see their car, home, or stocks before the debt is discharged. Chapter 13 Bankruptcy allows debtors to keep their property and slowly pay off a portion of the debts they owe.
Chapter 13 Bankruptcy can be a tedious and stressful process. People who think bankruptcy is the best option for them need to find an experienced bankruptcy lawyer, such as those at Zellar & Zellar, Attorneys at Law, Inc. They can then get the fresh start they deserve and look to a much brighter financial future. Contact our office today to schedule your free consultation with one of our experienced attorneys.
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