Legal Protection Offered By Chapter 13 Plan

When under financial crisis, one should consult the best lawyers who will advise them the best possible way to come out of the crisis situation. Some of the debt management programs do not provide much legal protection to the debtors. They do not give any legal protection until the full debt is paid under the terms and conditions of the accepted repayment plan. During the course of the repayment plan, even if a single payment is missed, the creditor may force the debtor into a new payment plan and also add additional fees or interest charges along with it. In such a situation, the best option is to declar  bankruptcy and get protection from the creditors as well as debt relief.

Chapter 13 bankruptcy plan is basically a debt consolidation program, authorized by court which allows one to reorganize their debts over a period of 36 – 60 months. One gets legal protection as well as court oversight immediately, the moment they file the case. The plan stops home foreclosure with arrearage payback at zero percent interest. It also prevents vehicle repossession and stops tax liens and tax levies. The plan gives a number of exclusive debt reduction opportunities to deal with the personal debt and income situation.

Chapter 13 After Chapter 7

There are certain circumstances, where one has to re-file for the chapter 13 plan. It occurs in situations when a previous case is dismissed due to chronically missed payments, one fails to file or provide documentation to the trustee or the court or is unable to attend a court appearance. At most of the times, court gives leniency if one misses one or two payments or is unable to make a necessary court appearance due to a valid reason. One can go for a chapter 13 after chapter 7 in unexpected situations such as under-employment, lawsuit, temporary loss of income etc. Sometimes the debts need to  be resolved after the completion of a bankruptcy and in such a situation re-filing is the only viable option to manage debts.

Managing Credit Card Debt
The credit cards debts can add up quickly one should find ways to effectively manage their credit card debts.

Chapter 13 reorganization is very beneficial in such a situation. It offers full debt consolidation and not just the credit card bills. Debts such as personal loans, second mortgages, medical bills are consolidated under this plan and at times significantly reduced. to solve this type of problems search acclaim legal services,