Chapter 13 bankruptcy may be considered a form of Debt Consolidation in Lake Worth FL. This type of bankruptcy allows a person the opportunity to make one more affordable payment to a trustee each month instead of multiple payments to various creditors. The one payment is distributed to those creditors. This arrangement can last up to five years.
A List of Obligations
When consulting a lawyer about Chapter 13 Debt Consolidation in Lake Worth FL, the prospective client should bring a list of all outstanding obligations. Some of those obligations may actually not be the person’s responsibility, which is surprising news to many men and women. For example, a creditor or collections agency may have been calling the individual, insisting that the person is responsible for a deceased relative’s debt. That is typically not the case unless the deceased person was the spouse or the person co-signed paperwork.
Stopping Foreclosure and Repossession
Chapter 13 is only feasible if the person can afford to make the payment to the trustee while staying current on present obligations. For instance, home foreclosure can be halted with the back payments rolled into the bankruptcy program, but the monthly house payments must be made on time to the mortgage holder. Repossession of a vehicle also can be prevented this way.
Excluded Debts
A bankruptcy lawyer walks clients through the process step by step, making sure all the paperwork is completed correctly. The client receives explanations about debts that cannot be included in the program, such as back child support and spousal support. Some kinds of back tax obligations may be included, but the person may also have the option of setting up an arrangement directly with the federal or state department of revenue.
Getting a Fresh Start
Approaching an organization such as the Law Offices of Sean I. Koplow with the intent of filing for Chapter 13 bankruptcy can feel embarrassing. However, men and women should look at the situation as empowering. This federally approved program allows U.S. residents to get back on their feet financially and get a fresh start. Visit our website to schedule an appointment for a free consultation.
