Facing the Hard Facts with a Bankruptcy Attorney in Lawrence, KS

People facing a financial crisis may decide to file for chapter 13 bankruptcy, which allows them to pay back their obligations over three to five years in a detailed plan. A bankruptcy attorney in Lawrence, KS can file the paperwork and assist the client in developing a repayment arrangement for all the qualifying creditors. This option feels like a lifesaver to many anxious individuals, but everyone considering chapter 13 must understand how difficult it can be to make those payments. The percentage of default is relatively high. Facing reality and filing for chapter 7 instead may be a more suitable solution. Chapter 7, unfortunately, cannot stop a foreclosure for more than a few months, and it may require selling off some assets to pay debts. However, the individual has a clean slate afterward and can begin anew.

Many individuals feel determined to pay back the money they owe. They also feel determined not to lose their home to foreclosure. It’s essential to take a serious, hard look at one’s finances before pursuing the chapter 13 option. The arrangement may look feasible on paper, but the person may have to acknowledge an underlying suspicion that this simply will not work. Failing chapter 13 after months of struggle and having to scrap the agreement, and then file for chapter 7, can feel even worse than the initial filing. In addition, not everyone is allowed to have their debts resolved under Chapter 7 after defaulting under chapter 13. A bankruptcy attorney in Lawrence, KS can provide counsel and guidance on the best way to proceed, given the client’s specific situation.

Although the statistics are scary, it’s crucial for the person to look at them. More than 60 percent of people who file for chapter 13 do not complete the payments as scheduled. There are several possible reasons for this. Even after completing credit and budget counseling, the individual may still not have overcome poor money management skills. With the financial situation already dicey, one large unexpected expense can cause the entire house of cards to collapse. Anyone considering filing for bankruptcy may contact a lawyer such as Joe Wittman to discuss these matters.

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