Problems You May Run Into When You File Chapter 13 Bankruptcy
Few things in life loom heavier on the horizon than foreclosure, repossession, and loss of income. Whether due to medical bills, a sudden layoff from a job, or other unforeseen financial issues, thousands of people each year file Chapter 13 bankruptcy. At Groce & DeArmon, P.C., we help everyday people, such as yourself, get back on their feet again. Though it is true that filing Chapter 13 bankruptcy isn’t nearly as stressful or miserable as it is often made out to be, there are some complications that can occur. Finding a local bankruptcy attorney to help you through the process will ensure you avoid or properly manage these common issues.
Missing a Payment
If money grew on trees and fell from the sky on windy days, you wouldn’t have ever thought to file for Chapter 13 bankruptcy. In fact, the term bankruptcy probably wouldn’t exist! But money does not come easily to all, and your bankruptcy lawyer understands this. At Groce & DeArmon, we do our best to make certain your creditors also understand this. Missing a payment will not help a bankruptcy situation, but it doesn’t have to make things horrible either. Contact your lawyer and creditors immediately if you believe you will miss a payment.
Most Chapter 13 bankruptcy lasts between 36 and 60 months, and they cannot exceed 60 months. This means that if you miss a payment, then the amount missed will be credited to later months’ dues. You can continue with this adjusted payment plan and still pay off all you owe. However, if you don’t inform your creditors, they could take the missed payment as a sign of bad trust. The court could choose to dismiss your bankruptcy payment plan altogether.
Applying for Credit & Chapter 13 Bankruptcy
Applying for credit while under the terms of bankruptcy payment plan can be a tricky proposition. Not because your credit is ruined. In fact, bankruptcy can help you qualify for credit you may not have had access to before, but all credit must be approved by the court and your trustee before you can use it. Typically they will only allow credit for necessities. If you cannot get to work without a car, then they should allow you to take out a loan to buy a new vehicle after a car accident. It is important to consult your bankruptcy attorney before applying for credit. With our experience, we can better determine whether or not the court will turn down your credit. Speaking with our team could save you time and disappointment.
Get into Contact with Groce & DeArmon, P.C. Today
Applying for and living under the terms of Chapter 13 bankruptcy can seem daunting. If you don’t know where to start or where to go but know you need help, then give Groce & DeArmon, P.C. a call. Our law firm is here to help you get back up and into the driver’s seat of your life.
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