A Chapter 13 Bankruptcy Lawyer Could Help Ease Financial Stress

It’s a common misconception that people who are in debt over their heads got into that situation by spending frivolously. In fact, many of the people who file for bankruptcy protection don’t have expensive cars, closets full of clothes or any kind of lavish lifestyles. Debt problems often occur because the primary wage earner in the home either lost their job or left the family. When this happens, it can take some time for a family without a large amount savings to get back on their feet. Getting a new job might require additional training and in cases of death or divorce, a single parent might have to wait several months before they have any cash to pay their bills.

A chapter 13 bankruptcy lawyer may be able to help a family that has some income, but not enough to cover all of their bills. Chapter 13 bankruptcy does not require a family to give up all of their assets and it allows them to reorganize their debts so they can afford the monthly payments. For families that suffered from job loss, death or divorce, filing for bankruptcy protection can be a great source of relief.

While the family is in bankruptcy, creditors cannot contact them to ask for payments. If this ever occurs, they can refer the caller to their chapter 13 bankruptcy lawyer or the trustee assigned to their case. Constant collection calls as well as harassment activity from lenders sometimes lead people to file for bankruptcy. The no-contact rule allows them to breathe freely for the first time in a while. Without the stress caused by creditors, people who have had some financial setbacks may be able to reorganize their lives so they can avoid making similar financial mistakes in the future.

A chapter 13 bankruptcy lawyer might advise their client to set up an emergency fund. Although they might not have money to contribute to this account while they are paying off their debts, it should be a top priority after their bankruptcy is discharged. website offers other tips that can help people who have struggled with debt in the past and want to improve their future financial situation.


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