A Chapter 13 lawyer works closely with you through the process to ensure you understand what is happening. Find out what you can expect from this professional.
One of the first things your Chapter 13 lawyer will do when you meet with him or her is to tell you the consequences of filing bankruptcy. For many individuals,
filing makes financial sense, but you still have to understand that it can place a black mark on your record for up to seven years, past discharge. In addition to this, this lawyer will provide you with important information about if you qualify, what will happen to your assets and how the next three to five years will work. It is a process to learn these details in many instances.
The Initial Consultation
In general, the first step in filing your claim is to determine how much you will need to pay each month to file. To do this, the Chapter 13 lawyer will work with you to determine what your costs are.
• How much income do you bring in each month?
• What are you utility expenses?
• What expenses do you have to other things, such
as child support, student loans or back taxes?
• What type of loans do you have? This includes mortgages, car loans, loans related to home equity lines of credit and others.
• How much credit card debt do you have? Do you have other types of unsecured debt?
• What other debts or obligations do you have?
In this process, the attorney is working to determine what the likely amount of money you will have to pay each month for the next three to five years will be. At this point, it may be an estimate, but it should be accurate enough. This will tell you if you can and should file.
Other Services
In addition to providing you with this factoring service, the Chapter 13 lawyer will then work with you to determine if you qualify and what will happen to your assets. In this type of bankruptcy, assets remain protected. That is, the court does not seize those assets. However, if you owe money on a loan, such as a car loan, and you do not have the means or willingness to be caught up and remain caught up on the loan, the car may be repossessed to close out the loan. This will differ in each situation.
In addition to this, the attorney will work with you to determine if you need credit counseling services, and handle the required financial management services. In most situations, the goal of this professional is to inform you about what will happen when you file and what requirements you need to meet along the way.
The Chapter 13 lawyer works closely with you, to ensure your goals are met, but that you have a realistic outlook on what could happen when you file. Each situation is different, but in most cases, you do have the ability to overcome your financial hardships through this process. It can be life changing for you to do this.
