When Facing Tough Times

Chapter 13 Bankruptcy Provides A Path For Repayment

If you are feeling overwhelmed by your debt and don’t know where to turn, you are not alone. Missouri recently ranked 14th in the nation for the number of personal bankruptcy filings. Many people find relief from their financial stress through bankruptcy. Chapter 13 helps people bundle their debt into a manageable repayment plan. Most people choose Chapter 13 either because they do not qualify for Chapter 7 or because they have assets they would like to protect.

At the Law Office of Curtis M. Garner & Associates, LLC, we believe in being there for our clients every step of the way. We understand that filing bankruptcy is not an easy decision, but we are ready to answer your bankruptcy questions honestly and use our strong knowledge of the law to find you the most effective solution possible. We are proud to serve clients in Springfield and throughout the Greene County area.

When Is Chapter 13 The Best Option?

Chapter 13 bankruptcy shares some similarities with Chapter 7 but also has some distinct differences. Both examine your income and expenses to see how much debt you can afford to pay back. Whereas Chapter 7 allows you to write off most of your unsecured debt, Chapter 13 allows you to restructure your debt to lower the amount you pay back and create a payment plan over three to five years. The court will discharge, or wipe off your record, any debts remaining at the end of the payment plan.

Sometimes people file for Chapter 13 because they did not meet the income requirements for Chapter 7 known as the “means test.” Other people choose Chapter 13 because they have assets they want to keep that are not exempt under the law. Only Chapter 13 allows you to keep certain assets. This type of bankruptcy is referred to as a reorganization of your debt.

You Can Protect Your House And Car In Bankruptcy

Both Chapter 7 and Chapter 13 bankruptcy can help protect your house and car, but if you are facing foreclosure or repossession, Chapter 13 may be a better option for you. Home and auto loans are secured debts, meaning that they are backed by the collateral of the house or car purchased with that loan. If you fail to pay the loan, the lender can take possession of the collateral.

The only way for Chapter 7 to help is to free up your available income so you can continue to make your home or auto payments, but it does not help if you are considerably behind on those payments. Chapter 13, on the other hand, puts a halt to any foreclosure or repossession proceedings so that you can make up the payments as part of your reorganization.

Take Back Control Of Your Finances

At the Law Office of Curtis M. Garner & Associates, LLC, we are ready to help you take control of your finances and your future. Contact us online or call us at 417-865-5297 to arrange for your free initial consultation in our Springfield office.