No one likes to admit that their finances are out of control and there is no way to get things back in line without some help. For this reason, people will try all sorts of programs that are designed to help them get back on solid financial footing. While those programs work for some people, others must make use of more drastic measures. Here are some of the reasons why calling one of the Chapter 13 Bankruptcy Attorneys in Valdosta town and making an appointment today is the only practical move.

Carrying a Considerable Amount of Tax Debt

People can get behind with their taxes for a number of reasons. For example, an extended illness can hamper the ability to generate income. What income is generated ends up going to cover medical bills and provide essentials like food, clothing, and shelter. Since tax agencies will only wait so long before they take action, it pays to contact one of the Chapter 13 Bankruptcy Attorneys in Valdosta and find out what can be done.

As the client will learn, most types of taxes cannot be discharged through a Chapter 7 bankruptcy action. Even when that is a possibility, there are specific conditions that apply. Unless the client can meet all those conditions, there is no possibility of discharging the debt. The only way to keep the tax agencies from garnishing wages or seizing assets is to file a Chapter 13 bankruptcy petition. Once it is approved, all collection efforts will stop and the debt will be repaid under the terms set by the bankruptcy court.

What About Other Debt?

Back taxes and other priority debts have a first claim on the funds collected from the debtor and will be paid in full over the three to five-year term of the bankruptcy. Unsecured debt may also be paid if the court determines that the debtor can repay those debts during that same period. Otherwise, unsecured debt is either discharged or those creditors will receive no more than a portion of the total amount owed. If those unsecured creditors do not file the proper paperwork with the court, they will be considered discharged in full.

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