Money problems are something nearly everyone has experienced. The economic roller coaster has cost many people their jobs and their homes, and there are record levels of consumer debt that go unpaid every month as the population tries to make ends meet.
One option that has been more frequently sought by people is bankruptcy. Individuals are able to get debt relief in a couple of ways if they qualify to file bankruptcy and it is often the one choice that can put a family back on track with their financial lives.
The choice to restructure personal debt and to continue to pay it back is known as Chapter 13 in the federal bankruptcy code. There are many individuals who prefer to use this option because it does allow them to pay back their debts, but to get a new and more manageable schedule under which to do so.
The Chapter 13 Lawyer MS can talk to prospective clients and let them know if their particular life circumstances are suited to the Chapter 13 bankruptcy option. One important consideration in choosing the Chapter 13 type of case is the future projected income of the debtor. Debt repayment requires a reliable and steady income in order for the new payment contracts to be met in a satisfactory manner.
Consulting with the Chapter 13 Lawyer MS can help a debtor look realistically at their monthly expenses and their monthly cash flow and to determine if that is the best option for their financial insolvency. If so, the lawyer can guide them through the process of filing their case.
There may be some advantages to the debtor who is able to file a case for Chapter 13. First, when a newly restructured repayment plan is set up, the debtor does not have to worry about their property being repossessed or surrendered. Things like cars, homes and other major property can be kept as long as the new repayment plan is current.
Second, the impact on the debtor’s credit rating may be somewhat lessened, but this will hinge on the fact that they are able to keep current with the new debt repayment schedule as set forth by the bankruptcy courts.
