Most people have heard about bankruptcy. In fact, a person doesn’t have to be knowledgeable about the legal field to understand that bankruptcy exists. What is surprising to many people is how many different types of bankruptcies are available to individuals whose finances have gotten out of control. While most people consider chapter 7 bankruptcy when they think about the bankruptcy process, there is also chapter 13 bankruptcy. This varies a great deal from the standard chapter 7 bankruptcy. If a person has to file for Chapter 13 bankruptcy, hiring a Chapter 13 Bankruptcy Lawyer in Lithonia GA will be very helpful throughout the process.
The first thing to understand is that unlike chapter 7, chapter 13 allows the court to order a payment plan in which a person’s debts, or at least a portion of their debts, are repaid. Chapter 7 bankruptcy entails the courts wiping out most of the filer’s debts upon conclusion of the bankruptcy process. In some cases, excess income or profits from the sale of certain assets can be sent to creditors to satisfy some of the debt, but in instances where there is no extra money, the debt is simply wiped out by the courts. Chapter 13 is for people who in a higher income bracket. This higher income gives the courts reason to believe that some repayment can be made by the bankruptcy filers.
For this reason, the bankruptcy courts, as well as a Chapter 13 Bankruptcy Lawyer in Lithonia GA, will work towards an agreement through which their clients will establish a 3 to 5 year repayment plan. This repayment plan will be created with a great deal of information from the people filing for bankruptcy to ensure that they have enough money to support themselves and their families. However, during this time they will also work towards repaying at least a portion if not all of their debts over a 3 to 5 year period.
If you are a higher income earner, but your finances are beyond your ability to repay, chapter 13 bankruptcy may be precisely what you need. To learn more about what a chapter 13 bankruptcy attorney can do for you, visit Chriscarouthers.com to find more information.