Many people struggle to justify spending money on hiring a Chapter 13 bankruptcy lawyer when they are already experiencing so many financial difficulties. However, the fact is that the services these lawyers provide truly are invaluable when it comes to maximizing your chances of successfully resolving your debt. Continue reading to learn more about some of the very important tasks that a Chapter 13 bankruptcy lawyer can handle for you in order to improve your chances of becoming debt-free.
#1: Preparing Payment Plan To Present To The Court For Approval
The first step in any Chapter 13 bankruptcy case will be to get a payment plan approved by the court. This step is very important since it will ultimately determine how much of your debt you are responsible for paying and how big of a payment you will need to pay on the debt each month. Your approved payment plan will also determine exactly how long you must remain in bankruptcy before the remaining debts can be discharged by the court. With so much riding on this payment plan, it is vital that you present a plan to the court that is both realistic and beneficial. A Chapter 13 bankruptcy attorney can help you to accomplish these goals so that you ultimately get the most out of your bankruptcy case.
#2: Stopping Current Collection Efforts
One of the benefits that comes along with filing for bankruptcy is that your creditors will no longer be able to pursue collection efforts until after your bankruptcy case has been resolved. However, putting a stop to current collection efforts will first require you to notify all of your creditors of your bankruptcy status. This is a task that is best left to a Chapter 13 bankruptcy lawyer since any successful efforts on the part of your creditors to negotiate your debt after you have filed bankruptcy could result in the creditor's rights to collect being restored.
#3: Dispersing Monthly Payments To Creditors
Once your proposed payment plan has been approved by the court, you will need to begin making monthly payments in accordance with the terms of this plan. The most effective way to do this is to submit a lump sum payment each month to your lawyer and then allow them to disburse the payments to each creditor. This will ensure that all payments are made on time and that there is a clear record of these payments that can be submitted to the court.
For more information, contact a bankruptcy law firm such as the Law Offices of Dan Moulton.