Educating Clients On Chapter 13 Bankruptcy

When you are having financial difficulties, there is a ripple effect that occurs throughout your life. Financial difficulties make it difficult to pay your rent or mortgage, they may cause stress that affects relationships with loved ones or causes you health problems. We understand that financial troubles affect every aspect of your life, and our compassionate and caring approach will help bring you some peace of mind.

At the O'Brien Law Firm, LLC, we work hard to determine the best way for you to address your debt and help you develop a plan for the future. Located in Southaven, we handle cases in northwestern Mississippi and southwestern Tennessee. In all of our cases, our attorney works to alleviate the stress and tension you feel from your financial burdens. Contact a Southaven Chapter 13 bankruptcy attorney by calling us at 662-655-1012 or toll free at 866-504-5969.

Chapter 13 Bankruptcy: Debt Reorganization

To qualify for a Chapter 13 bankruptcy, you must be an individual who makes a regular income. Income may include government benefits such as Social Security and unemployment. Corporations and LLCs are not eligible. In limited cases, individuals may have too much debt to qualify for Chapter 13 and may need to explore a Chapter 11 bankruptcy.

The primary difference between a Chapter 7 bankruptcy and Chapter 13 bankruptcy is that Chapter 13 works as a very powerful debt consolidation and reorganization plan. In this plan, individuals only pay unsecured creditors what they can afford for three to five years and there is no interest. Secured debts, such as car and furniture loans, can be restructured and repossession prevented. Delinquencies on mortgages can be repaid in affordable monthly installments and foreclosure avoided. At the end of the time period, the secured debt is wiped away, car and furniture loans are paid off and mortgage delinquencies are eliminated. Chapter 13 also permits you to keep assets that would be lost in Chapter 7. While Chapter 13 does not wipe away secured debt, it can modify debts such as:

  • Mortgage: delinquency can be restructured to affordable monthly payments
  • Second mortgage: can be wiped away all together
  • Car note: can be restructured, lowering the payment and interest rate
  • Student loans: can stop collection efforts such as tax refund seizures

Contact a Horn Lake Repayment Plan Attorney

If you need assistance in determining if bankruptcy is the right financial move for your circumstances, it would be smart to speak with an experienced and competent lawyer. Contact our law firm online by filling out the form, or by calling us at 662-655-1012 or toll free at 866-504-5969.

We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.