Because not everyone receives adequate financial education as they grow up, there are many people who end up finding themselves under a mountain of debt later on in life. When the financial pressure of debt becomes too much to bear in these situations, consumers generally have two options. They may opt to bury their heads in the sand, ignore the debt collection calls and letters, and pretend that the debt does not exist. Alternatively, they may consider filing a Chapter 13 bankruptcy to help them figure out how to repay their debts in a more streamlined way. For those consumers who would like to go this route, keep reading to find out why an attorney should be involved throughout the entire process.
* Many consumers don’t know that they actually have to qualify to file for
* This is because the federal government wants them to prove that they indeed have enough money to honor any debt repayment plan that they come up with. An attorney will know how to help consumers avoid wasting time by filing a petition for which they do not qualify by issuing a means test to ensure that they meet the financial requirements.
* Simply stated, cases involving Chapter 13 in Dayton OH are usually very complex. They take years instead of months to close, and they require the consumer to create a repayment plan that details how a person plans to catch up on their late payments. Because there are laws that determine how much each creditor should receive, an attorney’s help is usually necessary in order to make sure that the proposed plan is legally viable.
* A consumer filing for Chapter 13 bankruptcy may be able to take advantage of options like loan cramdowns or lien stripping that can reduce the amount of debt they actually owe. However, it’s often difficult for consumers to find out about these options on their own. While creditors won’t be eager to tell someone how they can pay them less money, an attorney will be happy to share these options with their client.
Chapter 13 bankruptcy does have the potential to bring serious debt relief, but only when it’s executed correctly. Hiring an experienced bankruptcy attorney helps consumers to make sure that they are taking the right steps to achieve the goals of financial freedom that they have set for themselves.