Rock Hill, SC Chapter 13 Bankruptcy Lawyers Guiding Clients Through Bankruptcy Court
If you’re tired of getting threatening letters and phone calls from creditors because you’re late on payments, you might get relief by filing for Chapter 13 bankruptcy. This type of bankruptcy allows you to get caught up on your bills so you don’t lose assets due to late payments. For instance, if you’re facing foreclosure, filing for bankruptcy could give you time to catch up on payments before you lose your home.
In fact, Chapter 13 bankruptcy is known for allowing debtors to keep their assets while getting rid of debt since it’s considered a reorganization of finances. When you file, you will make a payment plan that outlines the amount you will pay creditors in the next three to five years. After that, most debts will be discharged. Call our South Carolina law offices to learn if Chapter 13 bankruptcy is right for you.
What Is Chapter 13 Bankruptcy?
Filing Chapter 13 bankruptcy requires you to repay creditors at least a portion of what you owe by an agreed-upon deadline. Unlike Chapter 7 bankruptcy, where you would sell most assets to discharge debts, Chapter 13 bankruptcy lets you keep your property as long as you gradually pay your debts according to the payment plan.
As such, this type of bankruptcy is meant for individuals with a steady income that allows them to pay most of the debt they owe. So, if you’re having trouble paying all of your debts right now but can afford to repay most of them within three to five years, you should contact an attorney with knowledge of bankruptcy law in South Carolina.
Do You Qualify to File for Chapter 13?
Before you file a petition with the court, you must ensure you’re eligible for Chapter 13 bankruptcy. First, you must have enough steady income to make payments. This means your household income must be higher than the amount you spend on allowable living expenses since you will need disposable income to stay current on your payment plan. In addition, your secured and unsecured debts cannot exceed the limit for the state.
An attorney will review these details to determine if you qualify to pursue debt relief through bankruptcy. If so, your legal team will assist you in creating a repayment plan that the court will likely accept. This will involve listing the amount you owe unsecured creditors and calculating how much you can afford to pay. Once the court approves the plan, you can begin making payments immediately to get on the road to resolving your financial problems.
What Are the Benefits of Filing Chapter 13 Bankruptcy?
The main reason many debtors choose Chapter 13 bankruptcy is to keep assets while getting relief from at least some debt. Repayment plans are meant to immediately stop creditors from trying to repossess assets or pursue other collection methods, such as wage garnishment and levies.
For example, if your bank is threatening foreclosure if you miss one more mortgage payment, filing for bankruptcy can result in an automatic stay. This will stop creditors from taking action as long as you’re current on your payment plan.
Not all debt is treated the same when you file for bankruptcy. For example, you typically need to repay the full amount of taxes, child support, alimony, and most student loans. Your lawyer will review your bills and let you know which are eligible to be discharged with a repayment plan.
What Can Bankruptcy Attorneys Do for You?
If you’re ready to find out if Chapter 13 is right for you, call us at 803-266-1812. Our legal team has extensive experience assisting clients with this type of debt relief. We realize the stress that comes with remaining in debt for years and trying to avoid calls from creditors on a regular basis. We want to help resolve your financial problems by guiding you through the process of producing a payment plan soon so you can start making payments.
When you hire a lawyer from our firm, you will have a professional on your side who has years of legal experience filing bankruptcy forms, meeting deadlines, and creating repayment plans. Contact us today to learn more about your legal options.