Chapter 13 Bankruptcy Lawyer in Charlotte, NC
Restructure Your Debt into Manageable Payments
Many people filing for bankruptcy are worried that they won’t qualify to eliminate all of their debts. The not-so-good news is that not everyone qualifies for Chapter 7 bankruptcy. That said, the good news is that Chapter 13 bankruptcy is available for nearly everyone and is often a better option for greatly reducing or eliminating your debt. The best news is that Chapter 13 allows you to restructure all of your debt into an affordable multiyear repayment plan that can save you thousands of dollars in loan principal and interest payments.
Under Chapter 13 of the U.S. Bankruptcy Code, you agree to lump all your debt payments into a restructured plan that will be supervised by a bankruptcy trustee. I will negotiate the terms of the amount of debt to be included in the restructure, which may be reduced from the full amount owed on the credit card or consumer loan. In most cases, your repayment period is between three and five years. At the successful conclusion of the plan, your remaining debt is wiped clean. In most cases, the total monthly payment will be significantly less than the combination of monthly payments the individual or family may be paying to various creditors.
What Are the Advantages of Chapter 13?
Are you fighting severe debt and are unsure which solution is right for you? Here, we go over some of the advantages of filing for Chapter 13.
Benefits of Chapter 13 bankruptcy:
If you are facing foreclosure, filing is a good way to avoid or stop it altogether.
You can stop creditors from contacting or harassing you.
You may keep the property that you are making payments on.
You have more time to pay off your debt.
You do not need to contact your creditors directly -- all communication and payments will be through the Chapter 13 trustee assigned to your case.
Start a Free Consultation to Learn How to Get the Fresh Start You Need
If you need a fresh start from debt, turn to Blossom Law PLLC for help. I am Charlotte chapter 13 bankruptcy lawyer Rashad Blossom. I come from the same hardworking middle-class family background as most of my clients. I understand the frustrations of paying bills month after month, but never getting ahead. I opened my law firm in order to give people an even break they need and deserve against banks and corporations.
Call (704) 271-9078 to arrange a free consultation with an experienced Charlotte Chapter 13 bankruptcy attorney today. From offices in Charlotte, I represent individuals and families in communities throughout Mecklenburg County and surrounding counties. Hablamos Español.
The Benefits of Chapter 13
In most cases, Chapter 7 bankruptcy restricts the type of debt you can eliminate or restructure. For example, a Chapter 7 bankruptcy does not allow you the right to catch up on your mortgage payments or restructure your car payments or student loans.
In Chapter 13, all of debts and arrears may be included in the restructured debt repayment plan, such as:
- Credit card debt
- Car payment(s)
- Student loans
- Child support and spousal maintenance arrears
- Medical bills
You will avoid home foreclosure and stop harassing collection calls and legal actions such as wage garnishment, liens, and levies in process against you while reducing your total monthly payment. In addition, creditors often look kindlier on a Chapter 13 bankruptcy on your record than they will a Chapter 7. After all, you are making a good faith effort to repay the amount you borrowed.
Requirements for Chapter 13 Bankruptcy
Most people are eligible for debt relief through Chapter 13 bankruptcy because its requires give a much wider berth to qualify than Chapter 7. As of April 2019, you may be eligible for Chapter 13 if – as an individual – your unsecured debts amount to less than $$419,275 and your secured debts are less than $$1,257,850.
If you intend to file for Chapter 13, you must not have had within – 180 days before filing – a prior bankruptcy case dismissed because of your willful failure to appear, comply with court orders, or the case was voluntarily dismissed after your creditors recovered property with liens as approved by the court. Also within 180 days before filing, you must have completed a government-approved credit counseling program.
What Happens After Filing?
Chapter 13 bankruptcy stays on your credit report for up to seven years from the filing date. Most Chapter 13 bankruptcies last between three to five years before completing, which leaves a remaining two to four years where it will still appear on your credit report. You will be able to apply for new loans once you complete your bankruptcy, or during your bankruptcy with court permission. The effects of bankruptcy will diminish over time, qualifying you for better loans.
The most effective tactics to rebuild your credit after bankruptcy would include being cautious when getting new credit cards and keeping your accounts current, changing your spending habits, and checking your credit report for mistakes. Errors on your report can hinder your ability to rebuild your credit, so a careful review of your report and contacting the creditor and reporting agencies to get any mistakes corrected will help the rebuilding process. You will also get many new credit card offers, so be aware of high-interest rates and annual fees. Consider adjusting your spending habits to align with your goals, it will help avoid any bankruptcies in the future.
How Does Chapter 13 Affect Your Credit?
Bankruptcy is difficult and will impact your life in a lot of ways that could adversely impact your ability to maintain your former lifestyle. The honest truth is that Chapter 13 bankruptcy can wreak havoc on your credit score for quite a while and show up on your credit report for up to 10 years.
That said, bankruptcy is always a way to manage or eject debt that seemed impossible to overcome. Despite its own impact on your credit, Chapter 13 bankruptcy can help you avoid continually missing payments or accruing more debt from the interest that perpetually kept you down. Bankruptcy is rough on your credit, but it can provide a path forward instead of tumbling in a perpetual cycle of debt.
Need a Debt Management Plan? Ask Me About Chapter 13 Bankruptcy.
For bankruptcy services, I offer reasonable fees based on fair retainer and honest billing policies. I am available from 8:30 a.m. to 5 p.m. on most weekdays. Weekend and evening appointments are available if you make special arrangements.
Call me at (704) 271-9078 or use my convenient contact form to discuss your legal needs and request I return your call. Consultations via Zoom and FaceTime are available. Hablamos Español.
Blossom Law PLLC is a debt relief agency. The firm helps people file for bankruptcy relief under the U.S. Bankruptcy Code.
“He has a compassionate heart for helping people.”- Kevin
“Mr. Blossom was phenomenal throughout the entire process.”- Ms. J
“He took care of everything, and I now have no more tax debt. He was the best!!”- Martha