Hire a Chapter 13 Attorney in Martinsburg WV for Legal Advice

Chapter 13 bankruptcy helps those with steady incomes get back on firm financial footing by making debt payments more manageable. Not only can it help a debtor pay creditors back over a longer period, it can help them pay less than they owe. In this guide, readers can learn more about Chapter 13 bankruptcy.

The Differences Between Chapter 7 and Chapter 13

A primary difference between Chapter 7 and Chapter 13 is in the repayment of debt. In a Chapter 7 case, the debtor doesn’t pay their creditors, and the trustee will sell assets that aren’t exempt under state law. By comparison, in Chapter 13, the debtor makes monthly payments over a three- to five-year period and they get to keep their non-exempt assets. Any funds left over after meeting the plan’s requirements are also put into the plan, and once the plan is complete, the remaining dischargeable debts are eliminated.

Who’s a Candidate for Chapter 13?

If the debtor’s income is over the state median and they need bankruptcy help, they’ll have to hire a Chapter 13 Attorney in Martinsburg WV instead of filing a Chapter 7 case. Chapter 13 addresses problems that Chapter 7 can’t help, such as:

  • Catching up on overdue vehicle or house payments
  • Keeping non-exempt assets
  • Getting time to pay off non-dischargeable debts
  • Lowering student loan payments while paying other debts

These are just some of the advantages of Chapter 13, and a bankruptcy lawyer can review the client’s case and determine which type of bankruptcy is the right fit.

How Chapter 13 Works

A client and his or her Chapter 13 Attorney in Martinsburg WV will propose a repayment plan that extends over three to five years. Soon after, the debtor will start making monthly payments to the court-appointed trustee. The trustee and creditors will have a chance to file an objection to the plan if they choose to do so; if there are no objections, the case goes before a judge who usually approves the plan. Once the plan is approved, the debtor makes payments each month, and the trustee disperses funds to creditors.

Hiring a Lawyer

It’s not recommended for debtors to file for Chapter 13 on their own. It’s difficult, if not impossible, to create a confirmable repayment plan without legal help. Call today or visit Lshermanlawfirm.com to get the advice necessary to proceed.

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