Chapter 13 Debt Reorganization Offer Significant Advantages for Higher Income Families

Although the guidelines prevent many people from filing for Chapter 7 debt relief, it is still possible for anyone to use the United States bankruptcy code to their advantage. Reorganizing debts is a way to make monthly payments more affordable. Countless people get into financial crisis after only missing one month of payments. This could happen during a serious illness that prevents the primary wage earner in the home from going to work or after a temporary job loss. When catching up on the bills is impossible due to the late fees and increased interest rates, Filing for Chapter 13 bankruptcy in Springfield Missouri might be the ideal solution.

Filing for debt protection under this law requires submitting several form, including a statement of financial affairs. It’s very important for this form to accurately reflect the person’s situation. To fully complete the information required by the court, a person filing for Chapter 13 debt protection must have a list of their creditors and the amount they owe, a list of all the property they own, the amount and source of all income and the ongoing household expenses. Married couples can file for bankruptcy together or separately. Getting assistance from a law firm such as John Henderson Law, which has experience in bankruptcy representation, might ensure all the paperwork is completed and submitted to the court within the required time frames.

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Being in serious debt could cause a lot of stress that could potentially lead to medical problems. With the existence of this federal program, there’s really no reason for anyone to suffer with excessive debt and the stress that goes along with constant calls and letters from credits that want money that simply isn’t in the household’s bank account. Filing for bankruptcy protection allows a family to pay what they can actually afford toward their debts until they are repaid or discharged. A significant advantage of Chapter 13 over Chapter 7 bankruptcy is that a person who uses debt reorganization does not have to give up their property in order to settle their debts. They simply make a payment each month to the trustee.