Is Filing a Chapter 13 in Lawrence KS the Right Thing to Do?

There is no doubt that the debtor needs help in order to get back on an even financial keel. After consulting with an attorney, the suggestion is to file for protection in the form of a Chapter 13 in Lawrence KS. Here are some of the reasons why this approach may be just what the debtor needs to eventually enjoy a fresh start.

Qualifying for Protection

After looking over the affairs of the client, the attorney does not believe there is much of a chance of qualifying for a Chapter 7 bankruptcy. All factors indicate that with the help of the court, the debtor does have the resources to pay off the current debt. When this is the case, opting for a Chapter 13 in Lawrence KS will provide a plan of action that the debtor can successfully manage and still honor all those debts.

Stopping Collection Efforts

Once the Chapter 13 is filed, the debtor no longer has to worry about collection calls, threatening letters, or calls to an employer. With the matter now in the hands of the court, all inquiries will go through the legal process. As the court considers the situation of the debtor and verifies the amounts owed, creditors will have the opportunity to object to the arrangement. Unless they can bring compelling evidence to the table, the court will move ahead with the creation of a repayment plan and take the steps to implement it.

Remitting Payments to the Court

The process of remitting payments to the court is simple and ensures that the debt is settled in a timely manner. After approving a plan for repayment, the court will garnish the income of the client and a certain amount will be withheld from each paycheck. Those funds are forwarded to the court and distributed to the creditors in accordance with the plan. Once the balances are paid in full, the court removes the garnishment. In the meantime, the debtor learns to live with the remainder of the net salary or wages and avoids creating additional debt.

For help in determining if bankruptcy is the most practical solution, contact Joe Wittman today. With legal help, it is possible to regain control of the finances and look forward to a better tomorrow.

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