There different types of bankruptcy filings, chapter 13 in Valdosta area, often called the “wage earners plan” is one type of filing. It is a chapter of the bankruptcy law that is focused on providing consumer debt relief. This type of plan is a little different from other chapters, in that it allows you to make good on many of your debts and keep most all of your possessions. There are a few reasons that this is the favored plan for consumers. Ch13 can help to:
- Keep your home even when it is in foreclosure (as long as the sale date has yet to pass)
- Keep your cars
- Reduce interest rates on home loans and car loans
- Wipe out medical debts
- Wipe out unsecured debts (credit card debt)
- Help to reorganize your finances
- Puts an “automatic stay” in place the minute you file which prevents debt collectors from calling and taking any repossession action (the length of the stay depends on whether you have filed in the past or not)
There is a great deal of protections for the consumer under this chapter. The consumer is given an opportunity under “the plan” to catch up on arrears on debts over the course of 3-5 years (sometimes longer).
The Plan
The rules for Ch13 can be difficult to interpret so it is strongly suggested that you never go it alone. The successful completion of this chapter highly depends on the structure of the plan and the knowledge of the attorney that you choose to represent you. The right attorney will be able to stand by you every step of the way to ensure that your case is a success.
Charles Farrell Jr is a reliable, highly skilled attorney that specializes in bankruptcy that can help you take advantage of these laws!