Being in debt can be a major burden, an undesirable situation that can hinder present and future plans. It can also adversely affect personal and professional relationships. To get a new start in life, an individual can see a bankruptcy lawyer to find out about chapter 13 in St. Charles, MO. Use the following details to become more familiar with this chapter of the United States Bankruptcy Code.
chapter 13 St. Charles, MO is a legal status that allows an individual to reorganize financial debts to pay off a percentage of all debts owed. This plan is sometimes known as a wage earner’s plan because it’s structured to help people with a regular income to repay debts within an approved period of time. However, recent changes have enabled other debtors to use this plan to meet financial obligations.
A debtor who is employed by a company, self-employed, or running an unincorporated business can qualify for this adjustment bankruptcy plan. The repayment plan will depend upon the debtor’s income in relation to the applicable average state income. This case starts by an individual filing a petition with a bankruptcy court, usually through a bankruptcy lawyer. Once a debtor files the proper schedules, certificate of credit counseling, repayment plan, and other documentation with a bankruptcy court trustee, the case will proceed through the bankruptcy process.
Several advantages come with this type of bankruptcy. It allows a debtor to save a home from foreclosure. An individual can also keep most of his property while past due bills are being paid on a schedule approved by the bankruptcy court. A debtor can also have three to five years to pay off arrears according to the repayment plan. Payments for these debts are made to the court in one payment, thus allowing a debtor to avoid contact with creditors during this protection period.
Having a significant amount of debt does not have to put a person’s life on hold. It also shouldn’t prevent a person from paying daily living expenses such as a mortgage and grocery expenses. Using this type of bankruptcy can give a person a new start in life and assist in building better business relations with creditors. For more information on bankruptcy, please visit the website of the Law Offices of Steven K. Brown.
