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Chapter 13 can get working families back on their feet

In the course of the current presidential campaign, one of the major issues has become the financial stress facing middle-class families. Political candidates may disagree about the causes and the remedies, but it is undeniable that many working people are dealing with serious economic hardship. The decline in manufacturing and the loss of well-paying blue-collar jobs, combined with the insecure nature of today's employment world, have resulted in serious financial challenges for a lot of people. This is as true in Massachusetts as it is throughout the country.

When incomes become stagnant and people fall behind in their bills, it can sometimes seem there is no way out. Fortunately, for many people there is. For working people in Massachusetts overwhelmed by debt, filing for Chapter 13 bankruptcy can provide much-needed relief.

Chapter 13 is the solution for individuals who do not qualify for Chapter 7. In a Chapter 13 bankruptcy, the individual submits a repayment plan for approval by the court. All debts, even nondischargeable government debts like student loans, are included in the plan. Many creditors receive partial payments at lower interest rates. If the debtor successfully makes all the payments called for, the debtor will be released from the dischargeable debts at the end of the plan. While some debts cannot be discharged, the manageable payments under the plan and the relief from other debts can allow the debtor to bring the nondischargeable debts current.

The Salem and Haverhill Law Offices of Kenneth E Lindauer has been helping individuals recover from overwhelming debt since 1976. For more information, please visit my Chapter 13 bankruptcy web page.

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