If you are in a situation where you are unable to pay back outstanding debts, filing bankruptcy is an option that can help you out of it. Bankruptcy can help you start afresh with your finances. There may be debts which are extremely difficult to repay. Bankruptcy can forgive such debts and offer the creditors a repayment to a certain measure, based on the assets that are available.
In the United States, there are several chapters that come under the Bankruptcy Code. These include Chapter 7, 11 and 13. Chapter 7 deals with the liquidation of assets, Chapter 11 is about reorganization of a company or an individual, and 13 is about repayment of debts with a debt consolidation plan. Repayment of the debts becomes the primary concern in a situation of bankruptcy. Below is a discussion on Chapter 13 and all that it involves.
Chapter 13 in Lawrence, KS, as mentioned earlier, is a plan for debt consolidation. This plan is designed to provide terms of repayment that are reasonable. The court also offers protection for all your assets, for instance your car or home. Under this plan, you can get standardized terms of repayment and improvement of your credit. You can also get protection from creditors. Through this chapter, your lawyer can help you with the following:
1. Stop the foreclosure of your home: Foreclosure refers to a situation where a notice is given to you that allows a third party to bid on your property. However, to avoid such a situation you should seek help from a foreclosure lawyer beforehand. There are a number of ways which can help to stop a foreclosure. Negotiated forbearance agreement, loan modification, short sale are some of the many options that are available for avoiding a foreclosure.
2. A home equity loan or second mortgage loan can be removed: Home values suffer when the economy is troubled. Between the first and second mortgages, many homeowners owe an amount for their home, which is more than its current value. If you are facing such a situation, you have a home equity or second mortgage loan.
3. Stop the repossession of your vehicle: When a lien holder tries to take back your vehicle because of missed payments, the situation is referred to as vehicle repossession. Depending on the situation you are in, there are several options that can be helpful to you.
Apart from the above, this debt consolidation plan can also help you in stopping the occurrence of a judgment or wage garnishment. It can help to avoid utility shut-offs. Altogether, with the help of a reputable law firm like Joseph I. Wittman, Attorney at Law, you can put an end to creditor harassment using Chapter 13.