The decision to file bankruptcy isn’t always easy. Of course, this action has long-term consequences that can affect the filer’s ability to get credit in the future. However, when a family is facing foreclosure of their primary residence, or wage garnishments from one or more creditors, the decision becomes a lot simpler. Bankruptcy may stop legal actions against the person or couple who files and allow them to keep their home, vehicles, other assets and their paycheck.
A bankruptcy lawyer in Huntersville, NC may help an individual or couple decide whether chapter 7 or chapter 13 bankruptcy is ideal for their particular situation. Both types of bankruptcy have advantages. However, with chapter 13, a family may be able to keep their home. Those who file chapter 7 have to forfeit their home and any equity they have in it in most cases. Individuals and couples with a steady income but too many bills could use chapter 13 to compel creditors to work out a payment plan based on their income.
This type of payment plan ensures the monthly charges are affordable and not based on the creditor’s guidelines. With a payment arrangement they can afford, many families are able to get out of debt while they learn how to budget their money more effectively. Chapter 13 bankruptcy isn’t easy. It requires living on limited funds for the duration of the plan. The majority of the family’s income will be applied to their outstanding debts and they’ll only be left with enough money to buy food, gas and other necessities.
Although living on a strict budget isn’t necessarily comfortable, many families that have, with the help of a bankruptcy lawyer in Huntersville NC, chosen to file chapter 13 bankruptcy, learn that they were spending beyond their means and take the necessary steps to correct the things that got them into financial trouble. Without credit cards to fall back on during the repayment term, families learn to make sacrifices and appreciate the things they already have. People who are having a hard time dealing with the stress of overwhelming debt can contact Lake Law, PLLC for a consultation.