For years, Chapter 7 bankruptcies outnumbered Chapter 13 bankruptcies by a wide margin. With the flood of foreclosures in recent years, however, a higher number of bankruptcies in Arkansas are filed as Chapter 13.
There Is a Garland County Attorney for Avoiding Foreclosure
A Chapter 13 bankruptcy is an escape valve for people who are working and earning money but have fallen behind on a mortgage or car payments. A Chapter 13 permits a debtor to restructure his or her payment schedules in a plan of payments that will bring home mortgage and/or auto payments current over a period of three to five years. Most important, a Chapter 13 proceeding will immediately stop any foreclosures or repossessions.
Chapter 13 and the IRS
You may know that Chapter 13 can discharge some tax obligations, if they meet certain standards. However, did you know that under Chapter 13 the IRS is prevented from assessing penalties or interest on taxes that are being paid in a Chapter 13 plan?
Beware of Debt Consolidation Schemes
Debt consolidation may sound good, because it promises to renegotiate your debt with creditors. However, it is not backed by U.S. law and has no power to keep bill collectors at bay. Creditors are under no obligation to honor their negotiated agreements. Finally, the debt consolidation outfits will require that you pay them first.
The only consumer debt relief processes that are backed by the U.S. government remain Chapter 7 and Chapter 13. Filing requires not a debt consolidator, but a skilled, experienced bankruptcy lawyer.
If you would like to know whether a Chapter 13 proceeding would resolve your problem with foreclosures, repossessions or past due taxes, you are invited to call Hot Springs Chapter 13 bankruptcy attorney Steve Westerfield at 501-623-3922 or e-mail him for a free initial consultation.
Our office also offers services in Spanish. Esta oficina ofrece servicios en español.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.