Filing for Chapter 13 bankruptcy can signal the end of an out-of-control financial spiral and the beginning of a structured plan to get out of debt. The dynamics that come into play when several large and powerful financial institutions are exerting pressure on someone already going through a time of hardship can be extremely difficult and stressful. One of the benefits of working with experienced bankruptcy attorneys is that they will work with you every step of the way, customizing and modifying your plan as necessary and as permitted under bankruptcy law. The bankruptcy process creates a legal buffer between said financial institutions and the debtor. But with Chapter 13 plans ranging from 3-5 years, unexpected events can come up… Fortunately, Chapter 13 offers flexibility for those who hit some bumps along the way.
For example, recovering from a surgical procedure may cause a loss of income and financial strain, so it may be necessary to amend the payment plan that was established when you filed your case. Since medical costs are one of the top reasons why people have to file bankruptcy in the first place, your bankruptcy attorney is experienced in dealing with the sometimes unexpected financial complications that arise, and can work with the court to get you back on track with your payments.
Your bankruptcy attorney will be able to go over the specific options you can take, which include restructuring the payments into more manageable amounts, a short term moratorium on payments, or a “hardship discharge”. The hardship discharge is a last resort option if no further modification of payments is available, if the creditors have received at least as much as they would have if the individual had filed Chapter 7 bankruptcy, also known as a liquidation bankruptcy; and if the reasons for being unable to make or continue the payments on the plan are due to circumstances out of the clients control.
Chapter 13 Bankruptcy Options
No matter what issues you run into along your 3-5 year payment plan, the experienced bankruptcy team will be there for you. Whether you need to file an amendment in the event that restructured mortgage payments are still too high, or if you need to apply for a moratorium on payments due to an unexpected financial event. With a consistent focus and years of experience, we can overcome the challenges both expected and unexpected that may occur over the course of your bankruptcy schedule.
The benefits of an experienced legal team who are skilled in harnessing the unique provisions in the Federal Bankruptcy Code are numerous and proven. Filing for bankruptcy with the right legal counsel is the tried and true way that millions of people have used to re-established their financial footing and moved past overwhelming financial hardships. It can awhile for financial problems to grow to the point that they are overwhelming – and in the case of Chapter 13, it can take time to navigate out of them – but the important thing is moving in the right direction – out of debt.
Free Consultation with Bankruptcy Lawyer
If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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— Tim Cella (@TimCella2) November 3, 2022