Making the decision to file for bankruptcy tends to be a stressful and anxiety-provoking experience, but it usually signals the end of a very difficult time. From this moment, the person can move forward with the assistance of a Bankruptcy Lawyer in Grand Rapids MI. A Chapter 13 filing allows the individual to pay back all, or most, of his or her outstanding debts with affordable payments over three to five years. If this is not possible because the debt load is too high for the person’s income, a Chapter 7 filing pays off whatever can be managed and the rest of the slate is wiped clean.
Many individuals worry about how bankruptcy affects their credit report and how long the filing stays on that report. Although the filing can have a negative effect on the score for seven to ten years, it is still entirely possible to rent an apartment or even buy a house during that time.
Filing for bankruptcy with an attorney from a law firm such as if should immediately stop all collection activity from creditors. Although the person may feel upset about having to take this step, the relief of not having to avoid answering the phone or worry about overdue notices arriving in the mail is substantial. People who cannot meet their financial obligations tend to spend a lot of time juggling payments and trying to figure out how to prevent worst-case scenarios with various creditors. It can be scary when collectors are threatening to send the account to attorneys.
Payments to a trustee under a Chapter 13 filing must be made on time each month, or the entire plan can be dismissed. If a situation ever arises in which the person cannot make a payment, the and can petition for a temporary modification of the plan that will allow the client to make up a payment in a reasonable amount of time. If the problem is expected to be ongoing, a longer-term modification of the plan may be possible. Converting the plan to Chapter 7 is a further option if the payments have become impossible to make on time.
