One of the biggest problems with the way that personal finance works in the United States is what happens once people start struggling. Instead of making things easier so that citizens can get themselves back on their feet, companies usually take quick and decisive steps to make things far more difficult. One missed payment can spiral into a nightmare of late fees, rising interest rates, and harassing phone calls from debt collectors. If you’ve found yourself caught in this cycle, you should consult with an attorney about the option of using Chapter 13 Bankruptcy to help you to regain control.
When you file for Chapter 13 Bankruptcy, it puts an immediate freeze on everything about the situation. Debt collectors are obligated to stop calling you. Banks cannot proceed with foreclosure. Other forms of repossession, garnishment, and harassment are all brought to a halt. This happens because filing for bankruptcy moves your financial situation under the authority of the courts. From that point forward, anyone who does attempt to contact you about the money owed should simply be directed to contact your lawyer instead. If they ignore this request, they will be in violation of the law and can be fined.
That change alone can make an amazing difference to families that are struggling financially, but the real purpose of filing for this version of bankruptcy is to get a court-ordered payment plan that allows you to catch up on what you owe at a reasonable rate. The court will set how much you are expected to pay monthly and other terms, and then you simply have the follow the rules as laid out. If you do so for the full amount of time that is ordered, most types of debt that remain beyond that are dismissed and you have an opportunity to move forward with your life.
You can contact Hitchcock & Associates, P.C. to set up the consultation that you’ll need to make sure that your situation qualifies for bankruptcy. This is also a good opportunity to have someone assess your finances and to help you understand exactly which debts you have that can be dealt with through the system, and what is unlikely to change.
