Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is significantly different from a Chapter 7 Bankruptcy. A Chapter 13 is a reorganization of debt, allowing Debtors to repay all or a portion of their debts through a Chapter 13 plan while protecting property and personal assets. The concept is similar to debt consolidation, but unlike most debt consolidation programs, it permits Debtors to pay unsecured debt (i.e. a debt that is not secured by property) down without accruing interest (student loans are an exception) and without having to deal with those annoying calls from debt collectors. Under a typical plan, you make monthly payments to a court appointed bankruptcy trustee for generally three to five years. The amount of your monthly payment is determined by several factors such as the amount of debt you have, your ability to repay and the extent that you have assets. The bankruptcy trustee distributes the money to your creditors.

Is a Chapter 13 Bankruptcy Right For You?

If you choose to file a Chapter 13 Bankruptcy, the court will require you to use your income to repay some or all of you debt. This means you have to prove to the court that you can afford to meet your repayment obligations. Don't let this scare you. A Chapter 13 repayment plan is based upon how much you can afford to pay back based on your monthly living expenses. The court essentially allows you to pay back as much as you can afford over a 3 to 5 year time period. At the end of this time period, if you completed your payment plan, the court will discharge the rest of your eligible unsecured debt. If you cannot afford to pay back any of your debts, you may be able to qualify for a Chapter 7. If you have any questions you should contact us for a Free No Obligation Legal Evaluation.

Stop Foreclosure On Your Home Immediately

A Chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing a Chapter 13, debtors are allowed to repay their arrears (i.e. overdue payments) over 3 to 5 years, which allows individuals to save their homes. Chapter 13's may also allow a homeowner to avoid refinancing and surrendering the equity they have built in their homes. Debtor's can instead save their equity and pay their arrears back in their Chapter 13 Bankruptcy. Contact an experienced bankruptcy attorney for help in saving your home.

Save Your Car From Repossession

If you have fallen behind on your car payments, a Chapter 13 may allow you to save your car from being repossessed. A Chapter 13 will allow you to reinstate your original loan agreement and to make up missed payments over time. Under certain circumstances an experience attorney may even be able to recover your vehicle after repossession and consolidate the remaining balance. In some cases you may also be able lower your car payments and pay back only what the car is worth and not what you owe on the initial loan. You will need to contact an experienced bankruptcy attorney to see if this is an option for you.

Pay Back Income Taxes

Filing a Chapter 13 will allow you to pay your taxes over the life of your Chapter 13 plan. This will allow you to repay the IRS or State Taxes over 3 to 5 years and will stop all collection efforts from these taxing authorities! Allowing you time and peace of mind to pay them back.

Consolidate Student Loans

Typically student loans are not dischargeable in a bankruptcy, however filing a Chapter 13 will allow you consolidate them and pay them back at a lower payment. Your student loans will be combined with your other unsecured debt and will be part of your monthly Chapter 13 payment plan. Stop the collection efforts and the wage garnishments immediately and pay them back in a way that works for you! Contact us to find out how!

Protect Your Co-Signers

Did a family member or friend co-sign on a loan for you, that you are now having trouble paying for? Are they receiving harassing creditor calls and threats from creditors? Filing a Chapter 13 will protect your co-signers from receiving those harassing collection calls and efforts. A Chapter 13 allows you to pay the remaining balance on those loans over 3 to 5 years and in some instances with no interest! Contact us to find out how!

Questions & Answers

1. What is stable and regular income?

Stable and regular income is income from regular wages or salary, income from self-employment, wages from seasonal work, commissions from sales or other work, pension payments, Social Security benefits, disability or workers' compensation benefits, unemployment benefits, strike benefits, public benefits (e.g. welfare payments), child support or alimony that you may receive, royalties and rents, and proceeds from selling property.

2. What is considered disposable income?

Disposable income is the money left over after you pay for basic human needs. Examples of these necessities include: food, mortgage or rent, utilities, transportation, insurance, certain allotted installment payments. These basic needs are taken into consideration in formulating a plausible Chapter 13 proposal.

3. How much will my plan payment be?

The monthly plan payment is based on the amount of debt you have and how much you can reasonably afford to pay. In some circumstances your payments will be enough to pay off all your creditors. Some debt need not be paid in full and can be paid pennies-on-the-dollar. 4. What kind of debt is dischargeable? Dischargeable debt includes unsecured debt (e.g. credit card debt, medical bills, some taxes, etc.). While student loans and liens are not dischargeable, they can be paid through a Chapter 13 plan.

4. What kind of debt is dischargeable?

Dischargeable debt includes unsecured debt (e.g. credit card debt, medical bills, some taxes, etc.). While student loans and liens are not dischargeable, they can be paid through a Chapter 13 plan.