Making Sense Of Your Financial Mess

About Me

Making Sense Of Your Financial Mess

A few years ago, I realized that I had a real problem. I hadn't been able to pay my bills in awhile, and I was left wondering what to do. Bill collectors called me non-stop, and I wasn't sure how to go about making things right. Fortunately, a friend of mine who understood my mess explained that it might be a good idea to meet with a bankruptcy attorney. After I went, I was blown away with the level of care and understanding I was given. This website is all about helping other people to see the light, even when they are in the midst of battling a hectic financial situation.

How Does Chapter 13 Bankruptcy Work?

Chapter 13 bankruptcy is not exactly debt relief, but it is a way to get creditors off of your back and keep them at bay while you pay back your debts. Chapter 13 bankruptcy is different than Chapter 7, in that you do have to pay back your debts. With a Chapter 7, your debts are all free and clear; you no longer owe these debts and you have wiped your slate clean. Read on for further information about a Chapter 13 bankruptcy and how it works. 

Who Can File For Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is usually for those that still have some money at their disposal or that have a lot of money tied up in assets. They are able to pay back their debts, but maybe not on the same payment plan or in the amounts that are owed to your creditors. If you aren't sure if you qualify for a Chapter 7 or a Chapter 13 bankruptcy, you should discuss your income and debts with your bankruptcy attorney.

How Are The Debts Paid Back?

The bankruptcy trustee schedules the payment plan and the payment that is due to each of your creditors. One singular payment is sent to the bankruptcy trustee each month and it is divided up between your creditors by the trustee according to the payment plan that was set forth. The payment plan is in place according to what you can afford, although you may need to make some adjustments in your spending. If you were used to spending quite a bit of money haphazardly, this is going to need to change.

Can The Creditors Still Come After You?

Once your bankruptcy is filed, the creditors are not supposed to contact you any further in any way. They cannot call, send bills or attempt to sue you while you are in the middle of your bankruptcy. If you do get contacted by a creditor that was included in your bankruptcy, you can direct their calls to your bankruptcy attorney. After your bankruptcy is discharged, your bankruptcy is finalized and these creditors cannot come after you at all.

What If You Miss Your Payments?

If you aren't making your payments to the trustee each month, your bankruptcy could end up getting dismissed, and you will again be responsible for all of your debts. Your creditors can then come after you for these debts, and you will have to start your bankruptcy process over again.

If you are in debt and are over your head with bills, call a bankruptcy attorney such as C. Taylor Crockett, P.C. to discuss what options you have to get out of debt.