Filing for bankruptcy can be a complex process in and of itself. However, that complexity can be exacerbated when debtors are dealing with a Chapter 13 bankruptcy. While Chapter 7 petitions are often straightforward in the way that they wipe out unsecured debt, a Chapter 13 case requires assistance from an experienced attorney who really understands what they’re doing. Here’s why:
1. Chapter 13 bankruptcies are known for being complicated. One of the reasons that this is the case is because it doesn’t just wipe out unsecured debt over the course of a few months the way that Chapter 7 does. Instead, Chapter 13 requires working with the bankruptcy trustee to develop a viable creditor repayment plan based on current income. Although this may seem simple, that’s not always the case. Debtors must develop the repayment plan following certain guidelines concerning which creditors receive priority and how much a person must pay each one. Because these things can get complex very quickly, it’s in each debtors’ interest to hire a Bankruptcy Attorney in Huntersville NC for help.
2. A Chapter 13 bankruptcy comes with certain benefits that some debtors may be able to take advantage of. For example, a mortgage “cramdown” allows a car owner to reduce the value of their car loan so that it is the same as the actual value of their car. Homeowners may also be eligible for lien stripping, which essentially gets rid of second or third mortgages on the home. However, it can be difficult to take advantage of these things if a debtor doesn’t know about them. In addition, people will need to know which paperwork needs to find and how to approach the court and their creditors about these benefits. Fortunately, a Bankruptcy Attorney in Huntersville NC will not only be able to let a debtor know whether or not they are eligible, they’ll also know exactly which actions to take to arrive at the desired outcome.
While Chapter 7 bankruptcies aren’t always an easy process, they are often much simpler than Chapter 13 petitions. Those filing for Chapter 13 bankruptcy should not hesitate to hire an attorney for help with all legal aspects. Get in touch with Lake Law Office, PLLC to discover more about how a Chapter 13 bankruptcy attorney can help consumers restructure their debts in a way that makes more financial sense for their situation.
