Throughout Mississippi and across the country, millions of people have been hit hard by financial crises in recent years. Savings in many households have been drained due to medical bills, loss of income, and credit card balances that have gotten out of hand. Many people encounter challenges when unexpected expenses arise that they are not prepared to meet, such as vehicle or home repairs. These situations often cause people to fall behind on their mortgage payments, which may be a good time to consider filing for Chapter 13 bankruptcy.
Chapter 13 bankruptcy is commonly referred to as the “wage earner’s debt relief program.” Chapter 7 bankruptcy is designed to discharge debt for people who earn less than the state’s median income. To be eligible for Chapter 13, you must have a consistent and reliable income that exceeds the Chapter 7 cut-off level.
Chapter 13 bankruptcy restructures your payment plans
Your lenders must agree to a Chapter 13 bankruptcy because it restructures your payment plans for the debts you owe. In some cases, a lender might extend the life of a loan. In other instances, the lender might agree to accept lower monthly payments for a period.
One of the greatest benefits of a Chapter 13 bankruptcy is that it enables you to retain ownership of major assets, such as your home or a vehicle. You continue to make payments on time under a restructured plan until your debt is paid in full. The program typically takes three to five years to complete. If you’re considering filing for bankruptcy and need support to help determine which options best fit your needs, you may schedule a free consultation with Walsh Law Firm, in Mississippi, by using the contact form located on our website.
