If you are in a messy financial situation and think that bankruptcy is your only way to start afresh, the first step should be about contacting a Newport News bankruptcy attorney. You have two choices when it comes to bankruptcy – Chapter 13 and Chapter 7. You need a legal team or an attorney, who understands and has complete experience with Chapter 13 bankruptcy. In this post, we are discussing more on the various aspects of Chapter 13.
Chapter 13 Bankruptcy Basics
Under Chapter 13 bankruptcy, you are expected to propose a 3/5-year repayment plan to creditors, to pay a part or all of current debts, relying on your future income. For instance, if you are facing foreclosure on your home, or have been unable to pay your regular payments, or wish to handle the interest situation better, Chapter 13 can be a choice.
If a repayment agreement is agreed upon and you pay the money as per plan, all dischargeable debts will be discharged. In Virginia, there are a few things that you must know. For instance, the amount paid under Chapter 13 must be at least what creditors would have received in case a Chapter 7 bankruptcy was filed by the debtor. Of course, to file for Chapter 13 bankruptcy, you must have a source of income.
Working With a Bankruptcy Attorney
Like we said earlier, your attorney is your best source of information for Chapter 13 bankruptcy. He will tell you things that matter for filing the same – your assets, debts, income, expenses, financial information that are valuable to creditors. Filing fees have to be paid, and your lawyer will tell you what lies ahead, but for now any proceedings for foreclosure will be stopped. You have to file what’s called the ‘Chapter 13 Plan’, which basically outlines how you plan to repay the debts. The court will then appoint a trustee, who will call for a meeting for creditors, and time will be granted for creditors to review your plan. Your bankruptcy attorney will help you understand if Chapter 13 is right for you, or you can do better with Chapter 7.
FInding an Ecperience Bankruptcy Attorney
When you want in-depth representation for a Chapter 13 bankruptcy Yorktown, you have to seek legal assistance. A bankruptcy attorney is expected to be pragmatic, experienced, and must be able to empathize with the client. His/her role, however, is to guide you on the bankruptcy procedure and simplify your life going forward.