A Chapter 13 bankruptcy attorney helps consumers find solutions to manage their debts. In many cases, consumers can keep their property while having some debts discharged. Some people may be reluctant to file bankruptcy due to concerns about the effect that filing Chapter 13 will have on their credit rating.
There is no question that filing Chapter 13 bankruptcy will have an impact on your credit. Declaring bankruptcy
in any form will do that in some degree. Chapter 13 bankruptcy stays on your record for 7 years; missed credit card payments, defaults on loans, repossessions and lawsuits will also hurt your credit and you may not be able to secure future loans. However, it can also have a positive effect in the short term – all the creditor phone calls and collection letters stop.
When you need more time to repay certain debts, a Chapter 13 bankruptcy attorney can help. In this form of bankruptcy, a trustee is appointed by the court to help you with debt reorganization. This means you are required to file a plan to pay what you can afford on the money you owe to creditors over a three-to-five-year period under the court’s supervision. An experienced Chapter 13 bankruptcy attorney can help you navigate the process.
Your Chapter 13 bankruptcy attorney can explain how, in spite of a mark against your credit-worthiness, the pros may outweigh the cons. Here are a few examples:
- You may be able to reduce the amounts of your monthly payments and have a more manageable payment.
- You are able to retain certain secured property (such as a vehicle or a house) that you are making payments on.
- Your attorney helps you devise a workable budget and payment plan.
- Not all debts can be discharged – student loans, alimony and child support obligations are not going to go away in most cases.
- You may still be obligated to pay a mortgage loan, even after bankruptcy proceedings are completed.
- Obtaining future credit will be more difficult.
A Chapter 13 bankruptcy attorney will explain the process, answer your questions and go over your options during the actual consultation. If filing Chapter 13 bankruptcy is not the best choice for your particular situation, other areas of relief will be discussed.
While it is unlikely that all your stress will go away after filing, most of it will. It comes down to weighing the pros and cons and coming to an educated decision with the help of a Chapter 13 bankruptcy attorney.
The Law Firm of Coons & Crump
has lawyers who file Chapter 13 bankruptcy. We want all of our clients to learn about the relief that Chapter 13 bankruptcy can provide. Please contact our Chapter 13 lawyers for more information and for a free, confidential consultation.
With three offices to conveniently serve you, we are ready to take your call.