If you, like many people, experience financial problems, you’re not sure what to do or where to turn. You’re aware that you can’t keep up with your monthly obligations but are worried about the ramifications of filing for Chapter 13. You may have heard that bankruptcy will stay on your credit report for 10 years and make it impossible to buy a house, finance a car, or even get a credit card.
Many “disadvantages” of bankruptcy, however, are actually myths. For most filers, the benefits of bankruptcy significantly outweigh the actual downsides.
If you’re having trouble keeping up with your bills each month or are deeply in debt, discuss your options with an experienced attorney. For a free consultation with a St. Petersburg bankruptcy lawyer, call Berkowitz & Myer today or contact us online.
The Basics of Chapter 13 Bankruptcy
To understand how Chapter 13 can benefit you, it helps to understand exactly what bankruptcy entails. Fundamentally, Chapter 13 allows consumers to reorganize their debts in a way that allows them to make affordable monthly payments until they have paid back as much of their debt as the law requires.
In Chapter 13, you propose a three to five year repayment plan that takes into account your allowable monthly expenses. During the time that you make payments, bankruptcy protects you from any collection activity from creditors, including foreclosure, repossession, and lawsuits. Chapter 13 bankruptcy, then, can help people keep their property while paying down their debt.
What If I Am Behind on My Mortgage?
If you are behind on your mortgage payments and facing foreclosure, filing for bankruptcy will not lower your mortgage payments. That said, it will allow you to take the amount you are behind on your mortgage (the “arrears”) and pay it back during the course of your bankruptcy repayment plan. As a result, if you want to stay in your home, you still must afford your monthly mortgage payments while you are in bankruptcy. If you simply cannot afford your mortgage payments, look into other options.
Call Us Today to Speak With a Chapter 13 Bankruptcy Lawyer in St. Petersburg
If you have financial problems and don’t see a way out, discuss your situation with an experienced lawyer as soon as you can. In many cases, filing for bankruptcy can help you improve your financial situation and reduce or even eliminate debt—all while keeping important property like your home and car. To schedule a free case evaluation with an attorney, call Berkowitz & Myer today at (727) 344-0123 or send us an email through our online contact form.