How Chapter 13 in St. Louis Can Help Someone Who Really Wants to Pay Their Debts
Very few people get into serious debt on purpose. In fact, the majority of people intend to pay all of their bills and not being able to do so causes them a lot of stress. Unfortunately, economic situations sometimes change after the charges are made and people are unable to afford the debts they’ve accrued. A person might lose their job and be forced to take one with a lower salary or suffer from a medical condition that results in very high medical bills. As the bills go unpaid, late fees are added and interest rates typically rise. Creditors start sending letters and making daily calls to try to collect on the amount they are owed. Eventually, a person who was able to pay their bills on time for their entire lives finds themselves in a consultation with a bankruptcy lawyer like the Law Offices of Steven K. Brown.
There are two types of personal bankruptcy. The most popular is Chapter 7. This type of bankruptcy allows people to discharge debts without paying anything back to the creditors. Although this might seem attractive, it isn’t the best choice for everyone. When a person in debt owns a home they want to keep or has a significant amount of personal property, Chapter 13 in St. Louis might be a better option. Chapter 7 bankruptcy has income and asset limits that might prevent people with a higher salary from meeting the qualifications.
With Chapter 13 in St. Louis, families may pay off their debts over time. The courts give people who file this type of bankruptcy up to five years to complete a payment plan. Because the plan is based on the household income, the family will never have to choose between paying their bills and putting food on the table. This is the ideal option for people who really want to pay their bills but simply can’t afford them all with their current income. There is a lot of information about debt relief online. People who want to stop the creditor phone calls and take care of their debts responsibly can visit this website to get more information prior to scheduling a consultation with an attorney.