Years ago, the only option that a person had when they acquired too much debt was to file for Chapter 7 bankruptcy, which wipes away all debt but also absorbs any assets an individual may possess. Rather than giving up everything, more individuals are choosing to hire a Chapter 13 Bankruptcy Attorney in Wetumpka AL, as they can devise an alternative to Chapter 7 proceedings that will not cause a person to forfeit assets. Here is how an attorney can help when debt becomes an overwhelming problem.
Petition Filing
The first step is to notify a court system of a person’s intent to file for bankruptcy. The petition is extremely lengthy and should only be completed by a professional attorney, as they will be able to ensure it is completed correctly. One small error on the form can cause the petition to be thrown out of the court and force the person to start the process all over again, which wastes time and money.
Restructuring Proposal
Once the petition is accepted by the courts, the attorney will draft a debt restructuring plan that details how the person intends to satisfy their debts. Most plans require a set payment agreement that allows the debt to be paid off over a period of 3 to 6 years and stops the accrual of interest immediately. This can lower payments and prevent balances from increasing, which can help a person make headway with paying down debt. To know more, click here.
Payment Agreements
If the court agrees to the proposal, the attorney will then need to draft payment agreements and have them approved by the court. These documents will then be sent to the individual’s creditors, and they are required to abide by them once they are court ordered. Most people make one payment that is then distributed to all of their creditors, which can simplify the process and ensure payments are made on time.
No one should have to live with financial stress, and a Chapter 13 Bankruptcy Attorney in Wetumpka AL can help provide relief. The bankruptcy legal team at Courtney & Mann LLP can provide representation through the process, and help a person get their head back above water. Contact them today to learn more and take the first step in getting relief from a mountain of debt.
