Debt is a problem currently plaguing millions of people in the United States. Although many people are able to successfully overcome their debt, unexpected issues can arise which cause a person to see freedom from debt as an impossible goal. Those who feel like there is no hope for their debt can find help with chapter 13 bankruptcy in Jonesboro, GA.
How Does Chapter 13 Work?
When a person petitions the court for chapter 13 bankruptcy, they must provide their tax returns, information on income and assets, and a detailed listing of all of the creditors they owe, the amounts owed, and the type of debt. The court takes all of this information into consideration when granting a bankruptcy approval.
A person will submit a restructured payment plan to the court that details how they plan on paying off their debt within the three to five-year period granted. A person will never be given more than five years to pay off their debts and they must make their payments on time each month.
Benefits of Chapter 13
There are many benefits to filing for chapter 13, including helping homeowners to avoid foreclosure. Once the bankruptcy is in effect, the creditors are ordered to cease and desist so they are no longer able to pursue the debtor with any collection activity.
The scheduled monthly payments in the payment plan will be paid to the trustee directly or through a payroll deduction. It is imperative a person is confident they will be able to stick to their payment agreement because it is legally binding. If a person fails to pay their scheduled payments, their bankruptcy may be converted to a liquidation bankruptcy or dismissed entirely.
Those dealing with too much debt are urged to consider chapter 13 bankruptcy in Jonesboro, GA. Bankruptcy will stop the collection activity and take away much of the stress a debtor has been feeling.
If you would like to learn more about your bankruptcy options, visit website. Call the office to schedule your free consultation appointment right away so you can get started.
