One would think that returning to work means that there is now less reason to have to file bankruptcy. Sadly, that is not the case. We live in an economic climate that is the perfect storm to necessitate filing Chapter 13 bankruptcy. Why? Tax problems created by tapping retirement accounts, car notes that fell behind, looming threats of garnishment, and second mortgages on devalued property my friends. There is simply no way to solve all of these problems outside of the bankruptcy court.
The thought of filing bankruptcy--particularly Chapter 13--is an unpleasant prospect. But filing bankruptcy means that the United States Bankruptcy Court protects you from your creditors.
You will pay back a portion of your debts. You might pay back a big portion of your debt--maybe even all of your debt. I can't tell you for certain how much until I've evaluated your debt and income. But the amount you'll pay back will be one that is a function of all parts of your current income and expenses going forward over the next five years.
This calculation is the Chapter 13 means test, and my ability to get my clients through this test with their lives in tact is why my clients hire me.
There are allowances for continued reasonable contributions to your retirement account, your church, your kids educational expenses, your ongoing medical expenses, needed repairs to your home, the list goes on.
The fact that the bankruptcy court allows these expenses to factor into the determination into how much you pay back means the formula is fundamentally different (and most always less) than the amount you'll pay back through debt settlement companies.
And that reality means that it is always better to subject yourself to the court than is to subject yourself to the collectors.
If you're wondering where your relief is, perhaps it's time to set up your consultation with me Attorney Shannon McDuffie. (404) 418 8879.