1. Saving a house plays a major role to filing bk. Chapter 13 stops foreclosure by allowing catch-up on the late mortgage payments as well as through a structured bankruptcy plan to pay back the mortgage each month. Ch 7 bankruptcy may erase debt, yet the ch. 13 bankruptcy is more typical to catch up and save a home from a foreclosure sale. Ultimately, although medical reasons are commonly pegged as the most common cause of bankruptcy, the home is central to a family, and a dallas bankruptcy attorney would certainly work very hard to help a client save a home.
2. Saving a vehicle is also a serious concern from being repossessed, perhaps the most compelling of reasons besides a home. If someone is behind on auto loan payments, bankruptcy allows a catch-up on the accumulated dollar amount of the missed payments. Additionally, the bankruptcy can also allow for a vehicle loan cram-down in such a way that if the owner has had the vehicle loan for 2.5 years, they could be allowed to pay back the value of the vehicle as opposed to the balance on the loan.
3. Education is vital; however, millions of Americans have become late on student loans. Currently, student loans top credit cards in the United States for the total amount of consumer debt. Ch. 13 allows for a repayment of student loans that can be handled in the 5 year maximum period.
4. If a person is ill or has been injured in an accident, it’s important to deal with staying alive. Monstrous debt from injury and illness ends up affecting all parts of a person’s life. Bankruptcy can provide a workable financial solution to handle debt and get a fresh start after or during the healing process.
5. Financial markets often toss people around, including the extremely difficult proposition of being under or unemployed. Bankruptcy is the kind of option that allows folks to get their lives straightened out in order to get back on track. Particularly important is such a situation where the bankruptcy allows a person to catch up on mortgage payments after a temporary interruption in income. Ch. 7 bankruptcy allows for a fresh start after job-loss, and in cases where the new income doesn’t handle or doesn’t require saving a home.