The decision to seek bankruptcy protection is never an easy one. In fact, most people who do choose some type of personal bankruptcy would much rather resolve their debt issues in some other fashion. Once the decision is made to seek this type of resolution, it helps to work with an attorney to decide if a Chapter 13 in Casa Grande AZ is the best possible approach. In some cases, it may be the ideal fit.
Minimizes Damage to the Credit Rating – While filing for this type of bankruptcy will have an adverse impact on the credit rating, it is typically less damaging that attempting to go through some kind of debt management program. This will mean that once all the debts are settled in full, it will be easier to begin rebuilding that credit rating.
Collection Efforts Stop Immediately – Once the bankruptcy is filed, phone calls and collection letters will stop. Creditors are no longer allowed to contact the debtor in an attempt to collect any amount declared as part of the bankruptcy. Instead, it is the creditor’s job to respond to the court by filing a claim that verifies the amount owed, and then choose to participate in the repayment plan created by the court. Should the creditor decline to participate, then the debt is discharged in full.
Repaying Debt Over Time – The structure of a Chapter 13 in Casa Grande AZ approach allows the debtor more time to settle the outstanding debts. The court takes over the process of disbursing payments to all creditors. In return, the balances owed to each creditor are frozen. This means that no additional late fees, penalties, or interest accrues on those balances. Typically, the court will garnish the wages of the debtor, ensuring that the funds are collected and forwarded each month for distribution. This eliminates the need for the debtor to manually forward funds to the court. The employer will withhold the proper amount each pay period and ensure the money gets to the court.
For many people, filing a Chapter 13 bankruptcy is the first step in regaining their financial stability. Talk with Asheton B. Call and learn more about how this particular financial solution can be beneficial. After hearing more about the advantages of this approach, the debtor may find that this form of bankruptcy is really the best way to take care of past financial issues.
