Chapter 13 Bankruptcy Attorneys in Denver
What is Chapter 13?
Chapter 13 filings are plans to pay off oppressive debts over a period of 3 to 5 years and often allow individuals to settle their debts for a fraction of what they actually owe. Although the process is lengthy, taking years, a Chapter 13 bankruptcy can save individuals with significant debts from foreclosure and often allows debtors to keep all of their property. The primary advantage of a Chapter 13 bankruptcy is that it allows individuals to resolve their debts without having to have their property sold to repay creditors. Chapter 13 filings do require that debtors have a significant enough income to repay a portion of their debts within 3 to 5 years, but offer the distinct advantage of being able to hold to most pieces of property and assets.
Getting out of debt does not mean you will lose your house and car
It is a common misconception that filing for bankruptcy requires giving up some or all of an individual’s or business’s property. This myth revolves around the fact that a few forms of bankruptcy do involve the sale of property, but Chapter 13 bankruptcies often offer debtors a chance to get out of massive amounts of debt without giving up their house, car, and other property. Chapter 13 bankruptcies are a means of financial restructuring that are overseen by a federal bankruptcy court and can be seen as a way to negotiate new payment plans with creditors in situations where there is significant debt which may otherwise be unplayable.
Debt settlement and debt restructuring
An important part of each Chapter 13 bankruptcy filing is financial rehabilitation, and Chapter 13s are specifically designed to help individuals get back on their feet financially. Regaining control of finances and payments allows debtors to start over fresh, and many individuals who file Chapter 13 bankruptcies are able to fully recover from burdensome debt shortly after their bankruptcy discharge. The debt restructuring in a Chapter 13 filing can make even the most oppressive debts payable and although living inside of bankruptcy may not always be easy it is almost always easier than living with uncontrollable debt.
If you are considering bankruptcy and are interested in having legal assistance, contact us at Norton Law Offices for more information about your financial options.