Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy allows people to consolidate debt and pay it back over a three- to five-year period. Chapter 7 bankruptcy discharges and eliminates debts outright, but it can put certain assets in jeopardy. Additionally, one must pass the means test to be able to pursue Chapter 7.
Like Chapter 7 bankruptcy, Chapter 13 allows people to reduce and eliminate debt like medical bills, credit card debt and certain types of loans, but it is generally favored by those who have a higher income stream. As such, the process is more complicated than Chapter 7. Working through a plan can be complex, and it is highly advisable to partner with a skilled legal team that can inform you of your rights and help you structure an ideal payment plan for your situation and goals.
At Pond Law Firm in Jackson, Mississippi, bankruptcy lawyer Michael G. Pond has more than two decades of experience working on Chapter 13 bankruptcy issues. No case is too complex. We will partner directly with you to inform you of your rights, explain the process and take action that opens the door to financial freedom.
As with Chapter 7 bankruptcy, the automatic stay goes into effect with a Chapter 13 bankruptcy. This puts an immediate stop to creditor harassment, garnishment of your wages and lawsuits. It can also stop foreclosure proceedings.
Jackson-based Pond Law Firm is a federally designated debt relief agency. Our lawyer helps people file for bankruptcy relief under the Bankruptcy Code.