Press Release / Legal / Law / Sacramento Chapter 13 Lawyer Helps Debtor To Make A Repayment Plan Under Court Protection

Sacramento Chapter 13 Lawyer Helps Debtor To Make A Repayment Plan Under Court Protection

In Chapter 13 proceeding of bankruptcy filing the debtor pays part or full dues to creditor under court protection and supervision. The chapter 13 lawyer sits with the debtor fixing a plan of repayment which is decided by the debtor. Once the court and creditors agree on the payment plan the debtor makes the payments within a period of 3-5 years. The debtor makes the payments to chapter 13 trustees, who subsequently distribute the money to creditors. Once the payment is done the debtor is debt free and can make a fresh financial start. In Sacramento the lawyers explain the method of repayment plan that best suits the debtor considering the available resources.

Myths of filing

There are certain myths in bankruptcy that have clouded people’s minds and overshadow their rationality. Taking legal advice from a chapter 13 lawyer is essential to identify the truth about a debtor’s financial situation. Bankruptcy filing is a secret affair unless in case of a celebrity. It may influence people’s credit records but is not open to public. The thought of losing everything to bankruptcy is scary. But the fact is that debt consolidation may help debtor to restructure the debt and hold business or property and still pay the dues. It is incorrect to believe that filing for bankruptcy will not allow the individual to own anything again. The person’s credit record is affected for 10 subsequent years when get a line of credit will be tough. But after that the person can start with fresh financial standing.

Filing for bankruptcy jointly for married couples offers a lot of exemptions. A Sacramento chapter 13 lawyers will help them identify those and filed for exemptions. Filing paperwork is not difficult. An expert chapter 13 lawyer will be helpful in this matter. Mentioning all debts however big and small should be listed to prevent future confusion. The good part of filing is that the debtor will be relieved of all the harassing collection calls and subsequent letters of warning. The court mandate is to stop all communication to remind the debtor of the dues if it is being paid on time after consolidation. A debtor is not exempt from paying taxes traffic violation tickets, child care and alimony.

Comparability

If a debtor sits with a chapter 13 lawyer he/she may be able to decipher that chapter 13 filing is a better option than chapter 7. The debtor can spread the repayment of debt in a stretched out time. The plan is decided based on debtor’s available resources and is done under court protection. Unlike chapter 7 the non exempt properties are not lost. A debtor who had been discharged under chapter 7 earlier may not be eligible for one more within 8 years. But that is not so for filing under chapter 13. In this case the debtor has the resources to repay and can continue business activities unlike that in chapter 7. In Sacramento chapter 13 lawyer work closely with the court and debtor to enable a smooth repayment plan for debtors.