Hire a Chapter 13 Attorney in Martinsburg WV for Legal Advice

by | Jan 25, 2018 | Attorneys

Chapter 13 bankruptcy helps those with steady incomes get back on firm financial footing by making debt payments more manageable. Not only can it help a debtor pay creditors back over a longer period, it can help them pay less than they owe. In this guide, readers can learn more about Chapter 13 bankruptcy.

The Differences Between Chapter 7 and Chapter 13

A primary difference between Chapter 7 and Chapter 13 is in the repayment of debt. In a Chapter 7 case, the debtor doesn’t pay their creditors, and the trustee will sell assets that aren’t exempt under state law. By comparison, in Chapter 13, the debtor makes monthly payments over a three- to five-year period and they get to keep their non-exempt assets. Any funds left over after meeting the plan’s requirements are also put into the plan, and once the plan is complete, the remaining dischargeable debts are eliminated.

Who’s a Candidate for Chapter 13?

If the debtor’s income is over the state median and they need bankruptcy help, they’ll have to hire a Chapter 13 Attorney in Martinsburg WV instead of filing a Chapter 7 case. Chapter 13 addresses problems that Chapter 7 can’t help, such as:

  • Catching up on overdue vehicle or house payments
  • Keeping non-exempt assets
  • Getting time to pay off non-dischargeable debts
  • Lowering student loan payments while paying other debts

These are just some of the advantages of Chapter 13, and a bankruptcy lawyer can review the client’s case and determine which type of bankruptcy is the right fit.

How Chapter 13 Works

A client and his or her Chapter 13 Attorney in Martinsburg WV will propose a repayment plan that extends over three to five years. Soon after, the debtor will start making monthly payments to the court-appointed trustee. The trustee and creditors will have a chance to file an objection to the plan if they choose to do so; if there are no objections, the case goes before a judge who usually approves the plan. Once the plan is approved, the debtor makes payments each month, and the trustee disperses funds to creditors.

Hiring a Lawyer

It’s not recommended for debtors to file for Chapter 13 on their own. It’s difficult, if not impossible, to create a confirmable repayment plan without legal help. Call today or visit website domain to get the advice necessary to proceed.

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