If you’re considering filing for Chapter 13 bankruptcy, you should speak to a Chapter 13 bankruptcy lawyer Charlottesville VA residents trust. Bankruptcy can be a very complex process, and you want to have someone with knowledge and experience on your side. A bankruptcy lawyer can help you fill out the paperwork and ensure your legal rights are protected.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a type of bankruptcy in which you agree to a court-approved repayment plan of your debts. The repayment period may be anywhere from three to five years. This type of bankruptcy is ideal for individuals who have a regular income and wish to keep all of their assets.
What Are the Benefits of Chapter 13 Bankruptcy?
Chapter 13 bankruptcy has several notable advantages of Chapter 13 bankruptcy, including:
- Prevent Foreclosure: One of the main reasons some people shy away from bankruptcy is that they’re afraid of losing their home. However, if you file for Chapter 13 bankruptcy, you can keep your home. Your past-due payments will be divided into smaller chunks and can be paid during the course of your Chapter 13 plan.
- Lesser Impact on Credit Report: As a Chapter 13 bankruptcy lawyer in Charlottesville VA can confirm, Chapter 13 is also better for your credit report. It only remains on your credit report for seven years, compared to the 10 years for Chapter 7 bankruptcy. Therefore, you will be able to qualify for credit cards and loans faster.
- Assistance with Tax Debt: If you have fallen behind on your taxes, filing for Chapter 13 bankruptcy may be beneficial. You may be able to set up a more favorable repayment schedule and have lower monthly payments.
Should I Hire a Lawyer?
While you aren’t required to hire a Charlottesville bankruptcy lawyer to file Chapter 13 bankruptcy, it’s highly recommended. Here are a few reasons to hire a lawyer:
- Determine If Chapter 13 Bankruptcy Is Ideal: Before you decide to file Chapter 13 bankruptcy, you should talk to a lawyer and see if this type of bankruptcy is ideal for your situation. Your lawyer will assess your income and financial situation and decide if Chapter 13 is suitable.
- File Paperwork: Bankruptcy paperwork includes complex legal terminology the average person may not understand. That’s another reason why it’s helpful to have a bankruptcy lawyer on your side. He or she can help you fill out this paperwork correctly so that there are no delays in your case.
- Represent You in Court: Walking into bankruptcy court can be very intimidating. If you have a skilled lawyer by your side, you will feel less nervous and be less likely to say the wrong things.
If you want to file for Chapter 13, schedule a consultation with a Chapter 13 bankruptcy lawyer in Charlottesville VA today.