Chapter 13 Bankruptcy Stops Harassment and Controls Debt

The filing of a Chapter 13 Bankruptcy petition can return financial control to you and your Family’s future. For most individuals the choice of filing a Chapter 7 or 13 Bankruptcy is mandated by your household income and the statutory calculations that must be administered. Chapter 7 Debtors are traditionally those individuals who have little to no incomes to even meet their basic needs. Whereas, a Chapter 13 Debtor is satisfying all of his/her household and living obligations, but does not have enough excess income to pay anything but interest on their ever-growing debt. A Chapter 13 allows you to freeze your current balances and pay your unsecured creditors a pro-rata portion of what is determined to be available after satisfying all of your basic and necessary expenditures. Then after a relatively short time, you will be starting all over again: free of all unsecured debt that once left you immobile. This method is far more palatable then sacrificing your and your family’s needs and really not making any headway.
A Chapter 13 Bankruptcy involves establishing a financial Plan between 36 and 60 months in which you pay a reasonable sum (determined by our own situation) to the Trustee’s office, and in the end whatever dischargeable debt was not paid in full, is discharged forever. There will in fact be a light at the end of the tunnel.
If that seems too good to be true, it is. For most people filing for Chapter 13 relief, there will be a feeling of extreme relief. No more cutting corners, staying up nights, living on the edge or fear of wage assignments, bank levies, Court battles or endless harassment from your creditors…no longer will you be told by creditors what you can afford.
The two most common profiles of Chapter 13 Debtors are as follows. First, there are those who are meeting their financial obligations by paying minimums only, stealing from Peter to pay Paul or living like misers. Then there are those individuals who have finally recovered from a long period of unemployment, illness, or reduced wages. These people now have monies that enable them to stay current, but not enough to pay back the arrearages of past due payments that developed in the manner that the Creditors will demand.
Nobody wants to lose their home or have their pay reduced with wage assignments. And you do not need to. Chapter 13 Bankruptcy with the help of Attorney Jack Pitts with his almost thirty years of experience is your answer
At Pitts & Burns, we will spend the time to look at your income going forward and the expenses you must meet to determine what monies you really have available to distribute to creditors. Thereafter, we will create a plan that utilizes what you do have available to satisfy your creditors under the Bankruptcy laws. Mortgage and real estate tax arrearages will be paid in full and first. Then with the remaining monies, you will pay as much off as you can in your allotted period. Some people will pay off their creditors in full and others maybe 5%. The Court and pertinent Federal Laws just demand that you pay what is determined to be available after satisfying your reasonable living expenses and nothing more.
Don’t lose your home to foreclosure or deal any longer with Creditor harassment. At Pitts & Burns, we can help.