These days, keeping up with mortgage payments and other loan repayment plans is an uphill battle. Statistics show that paying back loans today has become harder than ever, and for the first time, the current generation may end up more financially restricted than their parents. While the economy is recovering from the devastating recession, there are still doubts about the future. Being caught up in a situation where you may have to declare bankruptcy is unfortunate, but if you are facing problems managing your debts, it may be the only suitable option. Consulting a Los Angeles bankruptcy attorney may be your best way out.
Reasons to File for Chapter 13 Bankruptcy
Depending on your individual conditions and contract with lenders, bankruptcy attorneys may recommend filing for Chapter 13. Chapter 13 bankruptcy is generally known as an advantageous law for the borrower and includes provisions to protect assets such as a house and vehicles from repossession or being auctioned. Some of the other benefits of filing Chapter 13 bankruptcy include:
- Get More Time To Make Payments:
Chapter 13 provides flexible repayment terms and usually allows you to take longer to make payments on your debts.
- Consolidate Debt:
Chapter 13 repayment plans also consolidate your debt and prevent individual creditors from using means to collect their debts from you in full.
- You Retain Your Assets:
The biggest advantage of Chapter 13 bankruptcy is undoubtedly that you can continue to live in your home while making payments on it, even if you are facing foreclosure.
Procedures to Get Started
Getting all of your documents ready and in line to file for Chapter 13 bankruptcy can be overwhelming. An experienced bankruptcy attorney in Los Angeles will guide you through every step of the process and keep creditors at bay. The process for filing Chapter 13 bankruptcy generally involves the following:
- Evaluating Assets:
Your attorney will determine all of your debts and assets, as well as information about your bank accounts, wages or other income, and the amount you spend each month.
- Studying Your Contracts with Lenders:
A good bankruptcy lawyer will also look over the contracts you entered into with your lender in order to identify better options for repayment of your debt.
- Determining the Right Option:
If your bankruptcy attorney recommend filing for Chapter 13 after going through your credit report, it is a matter of preparation to make sure that the filing is successful.
Making Sure You Get the Best Legal Help Available
Before hiring any attorney, ask about the number of cases they have filed and how many chapter 13 confirmations they have gotten. Make sure to chose a reputable law firm or attorney who has a background in bankruptcy and other financial issues. You should ask for a free consultation in order to make sure your attorney truly understands your needs and has a can make recommendations to help you in your situation. It is always best to the attorney about their fees, and ask for their recommended plan of action before hiring them.