Several homeowners look for a quick solution to their financial problems once they become bogged down with money issues. All they can think about is clearing their debts and starting over again. Unfortunately, when you fall way behind in debt, “quick fixes” are impossible. It will take careful planning and dedication, but in time you will be able to regain a firm grip on your finances. The first step could be to hire a Chapter 13 Bankruptcy Attorney.
Any owner involved in financial struggles knows that it is necessary to review the advantages and disadvantages of each option they have, including filing for Chapter 13 bankruptcy. To qualify for Chapter 13, you must prove that you have enough money to pay your debts without failing. This could be with help from inheritance or wages from you or your spouse. But for many people who are facing bankruptcy, this can be a difficult task to accomplish. In fact, 78% of Chapter 13 filings fail within the first 90 days because people fall back on reimbursements.
Contrary to what many people think, Chapter 13 bankruptcy does not start with a clean slate. Instead, the main goal is to help you consolidate your debt, reorganize your bills and provide a means for you to settle all your debts. And just two months after filing, you are expected to resume your regular monthly mortgage payments in combination with making a monthly payment to the bankruptcy trustee, which will pay off all your debts. Hiring a Chapter 13 Bankruptcy Attorney is a must at this point.
Generally, you will pay the bankruptcy trustee for three to five years. This means all debts must be resolved and your car loans and credit cards should be paid off as well. In theory, it sounds like a great plan. Unfortunately, if you were having trouble paying bills to begin with, paying a trustee will only add to your financial struggles, especially if you have to start paying your bills within a month or two of reunification.
Lawyers always advise their clients to weigh the pros and cons of all their decisions rather than rush into bankruptcy. In fact, most clients use one of the many other forms of mitigation to eliminate their debts and keep their homes. Contact Brent Sorenson & Associates P.C. today for more information.
