When financial problems become too much for individuals to handle on their own, a bankruptcy proceeding can actually help reorganize someone’s financed in a way that helps them meet their obligations while still having access to their income. One of the best ways for individuals to address their debts is through Chapter 13 bankruptcy.
What is Chapter 13?
Chapter 13 bankruptcy is essentially a plan for regular wage earners to make payments to satisfy debts with creditors over a span of a few years. Keep in mind that bankruptcy and all banking regulations are governed by federal law, which means that people in Florida as well as other all other states follow the same rules. A person’s state of residence does not change any bankruptcy rules. According to the U.S. Courts website, there are numerous advantages to filing under Chapter 13.
While an individual is in the process of paying for a Chapter 13 plan that is already in place, creditors and debtors cannot start a new action against the person. This is one of the ways in which bankruptcy can also be a form of legal protection. Chapter 13 protections will usually allow the individual to stay current on other payments for essential things like housing, taxes, and transportation while some of their income is immediately taken to satisfy older obligations. Debtors cannot subject the person’s home to foreclosure while they have Chapter 13 protections. The payments are also adjusted based on income so that the person is given up to five years to pay off all debts, although five years is a strict time limit.
Most individuals who have unsecured debts of less than $400,000 will be eligible for this process. Their regular source of income can be self-employment or their own businesses, in addition to those who have a regular full time job working for a company.
How can a lawyer help during this process?
Because Chapter 13 bankruptcy is a legal proceeding that needs to go through the federal court system, it can be difficult or impossible for many people to manage this on their own. Destin chapter 13 bankruptcy lawyers can always make financial struggles easier by managing most of this process on their client’s behalf. There are specific documents that need to be filed in the local bankruptcy court such as an initial petition, income and asset schedules, and financial statements. There are also specific, mandatory meetings that need to take place before the formal proceedings can begin, and it is important to be represented while meeting with the court appointed trustee. Federal courts have strict time limits and deadlines that need to be managed during this process.
Talk to a local bankruptcy lawyer now
If you need more help with any kind of bankruptcy issues or debts in the Destin area, contact ASG Legal. ASG has years of experience helping people sort out their financial problems through bankruptcy and other means.