Chapter 13 Bankruptcy – 7 Ways Your Life Will Improve After Filing
Some people believe that a Chapter 13 bankruptcy will be a miserable experience. The truth is that for most people, it’s a huge relief because it ends the pressure from your creditors. Below, I’ve listed the top seven ways your life will improve after you file Chapter 13 bankruptcy.
1. The phone calls from creditors will stop. Any creditor that calls you after your case has been filed is violating the automatic stay protection. As a consequence, if they keep calling you after your case is filed, they are breaking the law.
2. The foreclosure stops. The thought of losing your house is scary. Without bankruptcy, you are totally at the mercy of your mortgage company when you are behind on your house payments. After filing Chapter 13 bankruptcy, the foreclosure stops the second your case is filed. We do not need permission from your mortgage company.
3. The garnishment stops. Losing 25 percent of your net income is impossible to bear for most people. Unfortunately for the citizens of Georgia, a creditor can garnish up to 25 percent of your disposable wages. With Chapter 13, you don’t have to worry about this. Once your case is filed, we need to fax a judicial order to your payroll department to get it stopped.
4. The lawsuit stops. Knowing that you have a deadline to respond to a lawsuit can be extremely stressful. Once you file Chapter 13 bankruptcy, we take care of that for you. You won’t have to worry about the lawsuit once your case is filed.
5. The interest rate on credit card debt is lowered to zero percent. Without bankruptcy, most people pay between 25-30 percent interest on their credit cards. For many people, it’s a struggle just make the interest payments. In contrast, people who file Chapter 13 have the peace of knowing that there is light at the end of the tunnel.
6. The late fees stop. Getting nailed by a late fee is so frustrating. Your money just goes up in smoke. With Chapter 13, the late fees on your credit cards completely stop.
7. The interest rate on your car note is lowered. In Dalton Georgia, it’s not uncommon to see an interest rate as high as 30 percent. I see rates this high in the Rome, Cartersville and Dallas areas as well. Many people pay back more in interest than the purchase price for the car! With Chapter 13, we can lower the interest to around six percent in most cases.
There is light at the end of the tunnel.