Bankruptcy lawyers are legally licensed practitioners that assist individuals or businesses with the legal proceedings involved in filing for the same. They begin by guiding their client through the necessary steps in choosing the appropriate filing option, and then continue to assist the person with related paperwork, dealings with past debt collectors, keeping them informed of corresponding state laws. The most common type filed in the United States is Chapter 7, which is relatively quick and simple, but Chapter 13 is quite common if the debtor is employed or makes money some other way. |
Chapter 13 is a type of financial rehabilitation designed for individual households with a steady income to repay all of their debt in specific payment plans, and it is also referred to as the Wage Earner Bankruptcy. Chapter 13 allows the individual to keep possession of all assets, but the person is required to continue paying on his or her debts over time. This payment process usually lasts about three to five years. The amount of payment is dependent on various factors within the situation, including the debtor’s income and personal living expenses. Bankruptcy lawyers handle the establishment of such payment plans, and make decisions in accordance with the law, which varies state by state. If their client’s monthly income exceeds the corresponding state’s median income, the payment arrangement will usually be set to exist for five years. If their client’s income drops below their state’s median earnings, the arrangement will be set for three years unless the federal court system states otherwise.
Although having the ability to start fresh financially is generally a huge relief for people struggling with debt collectors and monetary balance, filing for bankruptcy (regardless of the chapter) also has its negative aspects. The most obvious disadvantage is the existence of such a drastic action recorded on the debtor’s credit report for up to ten years. The individual must seek permission from the court of the same if he or she wishes to obtain extra credit while the case is pending. Also, a person involved in actual bankruptcy proceedings will be less likely to be granted loans from a creditor as long as the information remains with the Credit Bureau. Lawyers that specialize in elimination of debt and related legal proceedings can help relieve their client of the stress of foreclosures, wage garnishing, harassing creditors, liens, and repossessions associated with financial crisis, while informing their client on both the benefits and possible negative results of Chapter 13.
In Grand Rapids bankruptcy attorney is the one who would be assisting you with your legal proceedings involving bankruptcy. To learn more visit, http://www.bankruptcy-grandrapids.net
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