People are scared of a bankruptcy, and much of this fear has to do with the “unknown” factor. For example, they don’t know about the different types of bankruptcies and what can be accomplished in bankruptcy. A Denver bankruptcy attorney can tell you that a Chapter 13 Bankruptcy has many advantages over not filing bankruptcy at all for people going through tough financial times in Northglenn, Boulder, or Greeley. A Chapter 13 bankruptcy lawyer will also be able to guide you through the complicated process and make sure that you come out paying the least amount of money over the shortest amount of time.
A Chapter 13 Bankruptcy is a re-organization bankruptcy, meaning that your debt is collected together and payments are made via one lump sum each month that is distributed among your creditors. Payment plans last from three to five years depending on your individual circumstances. The payment plan typically pays back only a small portion of the total debt and the end of the plan the unpaid portion is discharged. Payments will be much less than the bills you are paying now, because payment plans are based on your ability to pay, not on the amount of the debt. Your ability to pay is determined using a formula that is based on your average income in the six months before you file. You will never have to decide if you should go to the grocery store or pay on your Chapter 13 Bankruptcy plan because those expenses are taken into account for you.
A bankruptcy attorney will be able to present a workable payment plan that is accepted by the United States Trustee. The process is complicated,, and “do it yourself” Chapter 13’s are rarely successful. One of the best things about Chapter 13 is that much of your attorney fees can be paid as part of your plan to pay your creditors!
Many people may not know that under certain circumstances they can get rid of a second mortgage in a Chapter 13 Bankruptcy.
If you are trying to weigh the benefits and risks of filing for a Chapter 13 Bankruptcy get a free initial consultation with experienced Denver Bankruptcy Lawyer Barry Arrington at 303-205-7870 for your best, fresh start possible.