Chapter 13 Bankruptcy offers individuals a way to eliminate debt and stop foreclosure as well as auto repossession. When the Chapter 13 bankruptcy attorney declares bankruptcy for a person, they may be able to save their home, car, savings, and their personal belongings.
Americans have seen the economy steadily improve since the great recession of 2008, but many millions of people are still struggling financially. Sudden job loss or illness is typically the reason why a person falls behind on mortgage payments, or car payments, or racks up substantial credit card debt.
Bankruptcy is a legal method for eliminating debt. Bankruptcy offers relief to those who are not in a good financial situation for any number of reasons.
Bankruptcy can be either complex or simple depending on a person’s financial situation. The federal bankruptcy laws are intended to offer individuals a chance to start all over again; however, not all debts can be wiped out completely. If a person has a relatively high monthly income, they may have to pay back some of their debts. Those who file bankruptcy can usually keep their savings, home, car, and personal belongings as long as they can afford to keep making the home or car loan payments.
How Chapter 13 Bankruptcy Works
Filing chapter 13 bankruptcy is a very effective way to eliminate debt from credit cards, medical bills, personal loans, or past IRS taxes due. Chapter 13 is similar to chapter 7 with respect to wiping out debt. However, chapter 13 bankruptcy allows a homeowner to stop foreclosure and catch up on any missed payments. Chapter 13 also allows a car owner to stop repossession and to get caught up on any missed payments.
Chapter 13 Bankruptcy Stops Mortgage Foreclosure
Foreclosure is a process which allows the bank to take back a property from the owners who have failed to pay their mortgage according to the agreement. Chapter 13 bankruptcy allows the homeowner to stop the foreclosure automatically; at the moment that the paperwork is filed the process immediately stops. Under a Chapter 13 rule, once a person files, they are allowed to resume making their mortgage payments and to enter into a payment plan to catch up on any payments that were missed.
Chapter 13 Bankruptcy Stops Auto Repossession
Repossession is a process which allows the bank to recover a vehicle from the owners who have failed to make their monthly loan payments according to the agreement. Chapter 13 bankruptcy allows the vehicle owner to stop the repossession automatically; at the moment that the paperwork is filed the process immediately stops. Under a Chapter 13 rule, once a person files, they are allowed to resume making their car payments and to enter into a payment plan to catch up on any payments that were missed.
Chapter 13 Bankruptcy Eliminates Credit Card Debt
Credit cards are the most common type of debt in America. Accruing credit card debt can lead to financial destruction when the balance is too high to repay. Chapter 13 bankruptcy allows a person to wipe out credit card automatically; at the moment that the paperwork is filed the collection calls immediately stop.
Chapter 13 Bankruptcy Eliminates Medical Bills
People who have been involved in injuries or illnesses may find themselves being buried in debts and therefore often consider bankruptcy as an option to eliminate the debt. Chapter 13 bankruptcy allows a person to wipe out medical bills automatically; at the moment that the paperwork is filed the collection calls immediately stop.
Chapter 13 Bankruptcy Eliminates Personal Loans
Many people live from paycheck to paycheck and sometimes turn to payday lenders. Filing bankruptcy is a strong defense against aggressive creditors such as payday lenders. Chapter 13 bankruptcy allows a person to wipe out personal loans automatically; at the moment that the paperwork is filed the collection calls immediately stop.
How to Choose a Qualified Bankruptcy Lawyer
Chapter 13 Bankruptcy Attorney Lauren Rode is a partner with Consumer Action Law Group and has filed hundreds of Chapter 13 bankruptcies for individuals facing foreclosure, auto repossession, wage garnishment, and those needing to wipe out a credit card and medical debt. She advises her clients to call and discuss their situation as soon as court action is taken by a creditor; such as the filing of a notice of default, or when a person receives a summons or legal letter. Ms. Rode says that her clients usually feel better knowing what their legal options are instead of living in fear and being harassed by creditor calls.
Lauren Rode has said that it is important to seek the assistance of a qualified and experienced bankruptcy attorney to achieve the most favorable results. She walks her clients through the process and explains how it works when her clients need a bankruptcy attorney in Los Angeles to help eliminate their debts. She takes the time to answer all of their questions. According to Ms. Rode, anyone thinking about hiring a lawyer should make sure that the lawyer has filed Chapter 13 and has a strong track record getting payment plans confirmed.
How Chapter 13 Helped Ron Meredith
A recent example of a client that needed to file Chapter 13 is Ron Meredith. Ron fell behind on his mortgage payments and his lender sent him foreclosure notices. Ron was receiving collection calls and letters from many different companies, and he was overwhelmed and feeling buried. Ron had lived in his family home for many years, and even though he owed more than it was worth, he wanted to stop the foreclosure and stay in his home.
Ron called Consumer Action Law Group to discuss his options, and he was reassured to hear that he could stop the foreclosure, wipe out his credit cards and medical bills, and start making his mortgage payments to get caught up. Filing a chapter 13 bankruptcy stopped the foreclosure immediately, and Ron was able to propose a payment plan to catch up and save the family home.