Chapter 13 Bankruptcy Attorneys Can Help People Get Out of Debt

Chapter 13 bankruptcy attorneys have a considerable amount of specialized knowledge about how to resolve debt issues for clients. This kind of legal process is used every year by thousands of people that have had something happen that makes it impossible for them to pay bills. Rather than facing a foreclosure, collections action or other problems associated with unpaid debts, people can consult with this kind of law firm to determine if this process is right for them or if there is another method of debt resolution that is more appropriate.

Debt can be overwhelming

People may have well paying jobs, nice homes and cars and good credit. Something happens that changes their ability to repay debts. This can be a drop in business, job loss, temporary unemployment that puts people behind on payments or other problems. Sometimes people just get in over their heads in debt without realizing it. Most people do not want to be behind on payments nor to they want to loose their homes to foreclosure. Some people will have tried to negotiate with creditors to no avail while others have tried debt repayment plans that didn't work. Instead of waiting to see what happens next or trying to find other avenues to solve the problem, it can be a good idea to consult with an attorney that specializes in bankruptcy. This is the only real way to find out what is possible and probable in terms of getting debt issues resolved.

Why Chapter 13?

There are several different kinds of bankruptcy proceedings. Some are appropriate for businesses, while Chapters 7 and 13 are geared toward individuals. Both of these have requirements that people participating in this process must attend specific types of counseling services prior to having their case settled. After this point, the two kinds can be very different.

Chapter 7 can be more appropriate for people that have debt but not necessarily assets. This helps people to get a fresh start by wiping the slate clean. People that have assets like homes, or cars or that want to repay the debts but cannot pay them at the current schedule will want to use Chapter 13 bankruptcy. People that think they would like Chapter 7 instead of 13 have to pass what is called the "means" test. This determines which kind of action is best based on how their income compares to the median income for a same sized household in the same state. People that are not a match may be required to use the Chapter 13 process.