2 Facts That You Should Know About Filing a Chapter 13 Bankruptcy
No one likes the idea of filing for personal bankruptcy, but there are times when this is the most practical solution. Your bankruptcy attorney Pasco County can look over your situation and recommend filing for a Chapter 13 bankruptcy when appropriate.
As you mull over this possibility, keep these two factors in mind:
You Will Be In Bankruptcy for Three To Five Years
Filing a Chapter 13 bankruptcy places you under the protection of the court while you repay all or at least most of your outstanding debts. Depending on how much you owe and how much the court deems you can pay toward those debts every month, the process will focus on repaying what’s known as priority debts first.
If once the priority debts are repaid there is money left, payments to the court will go to cover non-priority debts. If there’s still some non-priority debts left unpaid at the end of five years, those can be discharged.
Your bankruptcy attorney Pasco County can provide a good idea of what to expect regarding the timeframe and your long-term obligation.
Your Creditors Must Stop Collection Proceedings Immediately
The moment that your Chapter 13 bankruptcy petition is filed, your creditors are required to stop all collection efforts. The court will notify them as soon as your petition is placed on the docket.
If any do call in the interim, tell them you’ve filed and provide the contact information for your bankruptcy attorney Pasco County. Should they persist, tell your attorney. The legal counsel will notify the court, which will handle it.
While filing for personal bankruptcy is a serious step, it can also be the beginning of a new chapter in your life. The things you learn along the way can equip you to build a sound financial foundation in the years ahead. Listen closely to what your attorney has to say, make an informed decision, and the journey to a better future will begin.
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