Services To Expect From A Chapter 13 Bankruptcy Lawyer
When your debts have become too great for you to pay off, you need to consider your legal options for resolving them quickly. Rather than risk having your wages garnished and assets levied, you can instead take out a form of bankruptcy.
However, if you do not qualify for a Chapter 7 bankruptcy liquidation, you may instead opt to consolidate and pay off your debts progressively over a number of years. You can start this process by retaining an experienced Chapter 13 bankruptcy lawyer.
Consolidating Your Debts
When you hire a Chapter 13 bankruptcy lawyer, you gain a legal advocate who can help you consolidate all of your debts. Even debts like student loans and back taxes, which normally are not eligible to be paid off in a Chapter 7 bankruptcy, can be included.
Your attorney will determine the overall amount of your debts and then petition the court's trustee to allow you to pay them off in a lump sum payment every month. The amount of money that you pay each month will largely depend on the amount of your debts, along with how much money that you earn. You cannot legally make a payment that would lead to extreme financial hardship.
Releasing Garnishments and Levies
Another service that a Chapter 13 bankruptcy lawyer can provide to you involves getting your garnishments and levies released. These collection activities can rob you of most of the money on which you need to live. They also limit or eliminate access to assets like your bank accounts and retirement savings.
Once your case is filed with the federal court, your creditors must immediately release their garnishments and levies against you. If they continue to try to collect money from you, they can be found in contempt of court and can be forced to pay your legal costs.
Finally, your Chapter 13 bankruptcy lawyer can ensure that your eligible creditors get a share of the payment that you make each month to the court. As long as the creditors receive money from the court, they cannot garnish or levy your income or assets. At the end of the case, they must release any remaining balances.
A Chapter 13 bankruptcy lawyer can provide valuable services to debtors like you. They can get your debts consolidated into one lump sum. They can also get garnishments and levies released and ensure creditors get payments each month.