Filing for bankruptcy can be an arduous process. Many people have the wrong idea about bankruptcy, thinking that it will automatically remove all of their financial obligations. The truth is that if a person has a regular income stream, they may be forced to file for Chapter 13 bankruptcy. This allows them to put together a payment plan over the course of three or five years.
When bankruptcy lawyers in Danville, VA, talk to their clients about bankruptcy, they may explain to them that the law may require them to use their disposable income to cover their debts. Courts allow people to have money for things that are considered necessities, including lodging, transportation, and clothing. However, after filing for Chapter 13 bankruptcy, it’s likely that the rest of their money will be sent to creditors.
Before talking to bankruptcy lawyers in Danville, VA, about bankruptcy, it makes sense for a person to figure out their debt payment schedule. For example, if a person makes $2,000 a month and they have a $1,000 mortgage, the courts may allow $400 for living expenses. This means $600 each month will be used for their debt. In five years they will be able to pay off $36,000. However, if a person has less debt, bankruptcy is not going to help them. It may be better for them to negotiate directly with lenders.
Because of the complexity of the process, it is best to avoid trying to file for bankruptcy without the proper legal assistance.
Learn about how The law offices of Stephen E. Dunn, PLLC is dedicated to helping people who are struggling with debt by visiting the following website https://www.stephendunn-pllc.com/. You can also connect them on Facebook.
