When an individual files for bankruptcy protection, one of the main points of stress is the uncertainty of whether certain assets can be kept after the bankruptcy is discharged, or whether these key assets need to be handed over to the bankruptcy trustee for dispersement to creditors. However, under a Chapter 13 repayment plan, there is no need for uncertainty. Any assets, like a home in foreclosure, can be kept by the debtor, because under a Chapter 13 repayment plan, any debts owed are restructured and repaid over a period of three to five years.
Certain assets under a Chapter 7 bankruptcy can also be kept by the debtor. However, most big-ticket items under Chapter 7 liquidation must be handed over to the bankruptcy trustee for sale and dispersement to creditors.
Debt consolidation is a key element of a Chapter 13 bankruptcy repayment plan. A Morris County debt consolidation attorney can work with a debtor to make a list of all debts owed, file for bankruptcy under Chapter 13, and restructure those debts with different interest rates in order to pay back the monies owed in a timely fashion. A debt consolidation bankruptcy under Chapter 13 is often a good option for those individuals wishing to keep their homes and vehicles, and who wish to pay off their debts in a timely manner.
When a debtor sits down with a Morris County debt consolidation lawyer, he brings a list of his debts and assets. In addition, the debtor brings a list of his monthly income and expenditures. The bankruptcy attorney works with the debtor to determine how much disposable income he has each month. This will help him to determine how much money he can pay back to creditors. This repayment plan is then filed with the bankruptcy trustee.
A qualified Morris County bankruptcy attorney works with the debtor to file bankruptcy in the proper manner. Because bankruptcy laws have drastically changed, the rules are more stringent and the requirements for filing bankruptcy are strict. An experienced Morris County bankruptcy lawyer represents the debtor during every step of the bankruptcy process, including the hearing before the trustee. It is recommended that a debtor file bankruptcy through a reputable and knowledgeable Morris County bankruptcy attorney, who has the experience and qualifications to lead the debtor down the bankruptcy court maze.