Legal Solutions That Can Help You Prevent Foreclosure, Repossession and Wage Garnishment
Just as different tools are used to fix different types of problems, different types of bankruptcy filings can be used to achieve different goals when you are struggling with debt. At Lord Law Firm, LLC, we have helped many of our clients use Chapter 13 bankruptcy as a way to gain control of their debt and avoid serious problems like home foreclosure and car repossession.
Like Chapter 7, Chapter 13 can help discharge certain debts (or reduce the amount you owe), and it will stop collectors from contacting you and trying to garnish your wages. There are several big differences, though:
- Chapter 13 requires that you make payments on at least some of your debt, with a three- to five-year payment plan established with a court and a court-appointed trustee, who makes sure the payments are made. The payment plan is designed to make your debt payments more affordable and allow you to satisfy your creditors.
- Chapter 13, unlike Chapter 7, can stop the foreclosure process and, in some cases, enable a person to make up missed mortgage payments and thus keep his or her home. A Chapter 13 filing can also help you afford your home by reducing the pressure of less important debts like credit cards and medical bills.
- Chapter 13 can help you prevent repossession of your car or truck if you are behind on payments, or, in some cases where a repossession just occurred, it can help you get your vehicle back. A Chapter 13 filing can be used to reorganize your vehicle debt and deal with back payments so you can keep your source of transportation, and in some cases it can significantly lower your car payments.
- Chapter 13 can help you get caught up on child support payments, recent tax debt and student loans in some cases. These debts fall into a different category than unsecured debts (such as credit cards and medical bills) and secured debts (such as mortgages and car loans), and they need to be evaluated on an individual basis.
Contact a Chapter 13 Bankruptcy Attorney Serving Lexington, Richland and the Surrounding Area
Chapter 13 may or may not be right for you. Since everyone's financial situation is unique, it is important to discuss yours with an experienced lawyer if you are considering bankruptcy. For some consumers who are in excessive debt, other solutions like consumer credit counseling and debt settlement are preferable to bankruptcy. Call us at 803-407-4140 to speak to an experienced Chapter 13 attorney serving Columbia, South Carolina.
If you'd like more information about filing bankruptcy, the following videos may be helpful: Bankruptcy Basics.
