File Chapter 13 Bankruptcy in St. George
Chapter 13 bankruptcy is a court-supervised debt consolidation program. When you file Chapter 13, you make one monthly payment for a set number of months to a bankruptcy trustee, who then sends out a negotiated lower payment to your creditors, settling your debt a little at a time. As long as you are making these payments on time, you will no longer have any contact with any of your creditors and will have no danger of repossessions, foreclosures, wage garnishments, or debt collection phone calls and lawsuits. Chapter 13 bankruptcy allows you to keep your car, home, and other assets while more easily paying a smaller amount of overall debt over time. This is a great way to get back in control of your monthly costs while also getting relief from the threatening emails and phone calls.
What doesn’t Chapter 13 help with?
Chapter 13 bankruptcy may consolidate - but will not eliminate - tax debts, student loans, or child support. Also, if you do not keep up on the court-determined monthly payment, you will not be allowed to keep any property (cars, homes, and other assets) that still carries a balance. However, this payment is often a fraction of what all of your monthly debt currently is, so it is an amount much more easily managed - and you will have no threat of repossession as long as you maintain that payment schedule.
By filing Chapter 13 bankruptcy, the court recognizes that you are not simply ignoring your debts and that you are trying to do the right thing. They also understand that everyone’s situation is different, and that people can find themselves in financial distress through no fault of their own. Because of this, you are given more leniency on what you are allowed to keep than if you filed Chapter 7. Many people are allowed to keep all of their possessions, in fact, even the luxury items like art and antiques. The court may require you to turn over a portion of your annual tax refund (over a certain amount – you will get to keep some if not all of it), depending on the source of the refund and your individual case. Otherwise, what is yours remains yours!
If Chapter 13 bankruptcy sounds interesting, and it should, give us a call or text at 801.721.9633.
