Chapter 13 Bankruptcy Lawyer Oklahoma City
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Chapter 13 Bankruptcy Lawyer. Debt can be crushing. You never know how you will make the next payment (and there always seem to be more and more payments to make). You start dreading the next letter and stop answering your phone to avoid the banks and lenders who are trying to speak to you. That means it is time to talk to a chapter 13 or chapter 7 bankruptcy lawyer. In this section, we will discuss the need to hire a chapter 13 Bankruptcy Lawyer.
If you are in debt and can’t see any path to escape from the payments that you have to keep paying, the best option may be to file for Chapter 13 bankruptcy. Also known as the wage earner’s plan, this gives the court the power to negotiate your debt, to appoint a trustee who will deal with those who are chasing you for money and will allow you to emerge debt-free after a period of between three and five years. Chapter 13 is a choice that you make, not one that is forced upon you by others. It is never a good idea to try to do this alone and when you hire a chapter 13 bankruptcy lawyer.
A person may end up over his or her head in debt for reasons they have no control over. However, what they can control is how they deal with that debt. For many, the first action is to ignore it and hope it will go away. However, this is probably not the right decision. A good chapter 13 bankruptcy lawyer will guide you through the steps necessary to file a successful chapter 13 bankruptcy.
Chapter 13 Bankruptcy Lawyer OKC
One option for people who are struggling unsuccessfully to get out of debt it to declare chapter 13 bankruptcy. This is obviously a big and serious move, but it may also be the most sensible one – a decision which makes life much easier in both the short term and the long term. It also means that you can stay in your home and the bank cannot foreclose on the mortgage.
Chapter 13 is a way of consolidating all the debts that a person has into a single monthly payment. The court has the authority to negotiate a deal even without the approval of the creditors to whom the person owes the money.
Chapter 13 Bankruptcy Lawyer Oklahoma City
Filing for Chapter 13 bankruptcy gets rid of the unbelievable monthly stress of trying to make the payments to the various creditors. The court works out how much gets paid each month to the various people you owe and deals directly with them so that you don’t have to.
The biggest advantage of chapter 13 is it means that the bank cannot kick you out of your home or sell it from under you. Of course, you will have to continue making the monthly mortgage payments during the period of chapter 13, but you can do so secure in your own home.
Because the court renegotiates the debt it means that monthly payments may be lower, and spread out over a longer period of time. It also frees third-parties from their obligations, meaning that if someone else co-signed on a mortgage or other borrowing arrangement they will no longer be liable for the debt.
Another advantage of chapter 13 is that the payments are made to a single person – the court-appointed Chapter 13 trustee, who then distributes the money to the various creditors. He or she deals with them on your behalf, so you won’t be worrying about phone calls or letters from banks and lenders.
Once you have applied for chapter 13 and the court has worked out a repayment plan, which will be between three and five years, you can rest assured that the creditors will not be able to come after you, and they have to accept whatever terms the court works out with them.
Chapter 13 Bankruptcy Lawyer
Filing for bankruptcy shows that you have taken responsibility for your debt and are working to get out of it. You will have to explain to the court the reasons that you got into this situation, but at the same time you will be recognized for having taken action to sort things out (and don’t worry, whatever your story, you can be sure that the court has heard similar and worse many times before.)
Now it is true that filing for bankruptcy will ruin your credit rating for several years. But the truth is that continuing to struggle under mounting debt will be even worse for your credit rating. Missed debt payments, defaults, repossessions, and lawsuits will destroy your credit rating.
Declaring Chapter 13 bankruptcy is the first step in rebuilding your credit rating and taking care of your debts, allowing you to plan for the future and look forward to the rest of your life without the stresses and panicking which debt brings.
You will have to get rid of your credit cards while you are working through the chapter 13, but getting rid of them may help you to stay out of further debt. Also, within one to three years you will be able to apply for new lines of credit, though they will probably be at a higher interest rate.
Bear in mind that it will be difficult for you to get another mortgage in the future, but there are banks and lenders who specialize in so-called high-risk borrowers – which is an unfair term to use on someone who has taken the responsible and sensible step of getting out of debt through filing for bankruptcy.
Any individual, even if he or she is self-employed or running an unincorporated business, can apply for chapter 13 (though companies are not able to file under this clause). If the amount of unsecured debt (excluding mortgage and other debt which have property as security) is $394,725 or less, and the total amount of secured debt (for example, a mortgage) is less than $1,184,200, you can apply for chapter 13. These numbers are revised from time to time, so you’ll have to double check the latest figures.
The process begins by filing for Chapter 13 in your local bankruptcy court. The court will want to know how much you owe, and how much money you have. You will have to tell them how much you earn and how much you spend each month. You will also provide a statement of financial affairs.
The court will want to know that you have had credit counseling and will want to see any repayment arrangements you may have already worked out. You will also have to show them your tax returns from the previous year.
A couple can either apply for chapter 13 jointly or individually.
Chapter 13 will not get you out of paying alimony or child support, but then neither will anything else.
Similarly, student loan debt cannot be got rid of with chapter 13, but again there is no other way of getting rid of it either.
Obviously declaring bankruptcy is a major decision and one which should only be made after consultation with a good chapter 13 bankruptcy lawyer who can advise you of the full legal and financial implications of the move.