Chapter 13 Bankruptcy
What Can a Chapter 13 Do for You?
- Keep and protect all of your property
- Stop Mortgage Foreclosure by making up the delinquent payments over an extended period
- Possibly strip wholly unsecured second mortgages
- Discharge credit cards, medical bills, certain types of taxes and other debts by making an affordable plan that can range from 0 percent to 100 percent depending on the value of your assets and your income
- Repay debts with 0% interest
- Pay some of your Attorney’s Fees during the life of the plan
- You are dealing with a Chapter 13 Trustee who really wants your business rather than a Chapter 7 Trustee who hates all of the new paperwork
- You can reclaim personal property that was repossessed pre-petition
Overview of a Chapter 13
Chapter 13 is the section of the United States Bankruptcy Code which enables qualified individuals or small proprietary business owners who desire to repay none or part of their debt over a period of 36 to 60 months to their creditors but are currently experiencing financial problems.
This bankruptcy allows you to “pay what you can afford” for a specific period of 36 to 60 months. After that time, you are relieved from the responsibility to pay any balance due on certain debts.
It offers a unique opportunity to catch up past due mortgage arrearages or car payments over 36-60 months, thus allowing you time to catch up and keep your assets.
The Repayment Plan
In a Chapter 13 plan, you create a debt reorganization plan, with payments ranging from 0% to 100% of your unsecured debt, depending on your income and value of your property.
Who Can File a Chapter 13 Bankruptcy?
Corporations and partnerships are precluded from filing a chapter 13.
Chapter 13 is open to individuals or married couples who have a regular source of income and owe less than $419,275 in unsecured debt and $1,257,850 in secured debts on the date they file.
BANKRUPTCY QUALIFICATION TEST
1. Have you lost your job? Yes/No
2. Are you having difficulty paying your credit cards in full each month? Yes/No
3. Are you behind on your house payment? Yes/No
4. Are you behind on your car payment? Yes/No
5. Do you want your car payment lowered? Yes/No
6. Do you only pay the minimum on your debts? Yes/No
7. Do you often ask for loans from friends and family? Yes/No
8. Have you gotten a payday loan? Yes/No
9. Do you owe back taxes? Yes/No
10. Do you not have any money left over each month after you have paid your bills? Yes/No
11. Have you had overdrafts on your bank accounts? Yes/No
12. Have you been sued? Yes/No
13. Are you being threatened with a garnishment? Yes/No
14. Do you have tax debt? Yes/No
If you have answered Yes to two or more of these questions it is important to sit down with an experienced bankruptcy attorney to analyze you financial situation. Call our experienced lawyers today for a free consultation to discuss if bankruptcy is right for you. We offer a $0 Money Down bankruptcy program.
Some Unique Benefits of a Chapter 13
- You are protected from collection actions by your creditors who must comply with the terms of an approved plan.
- You can keep your real estate and personal property without fear of losing it to liquidation by the bankruptcy trustee or foreclosure or liquidation by your creditors.
- Some debts can be discharged in a Chapter 13 that couldn’t be discharged in a Chapter 7, such as marital dissolution equalization payments, debt allocated in a divorce, non-criminal fines, and other specialized debts.
- Finally, Chapter 13 is a dignified solution to your financial problems. You have the peace of mind that you did your best to pay part of your debt back and still receive the benefit of a discharge. If you would like to see how a chapter 13 bankruptcy would help solve your financial problems, call Rowdy today for a free consultation.
What Does a Chapter 13 Bankruptcy Lawyer Do?
If you’re struggling with substantial debt, it’s natural to feel that everyday life is becoming overwhelming. Filing for Chapter 13 bankruptcy can be a strong option for those who, while facing financial hardship, still have a regular income and wish to create a structured plan for repaying creditors.
Chapter 13 allows you to reorganize and consolidate your debt, establishing a manageable payment plan without needing to liquidate your assets. Working with a knowledgeable and dedicated Terre Haute based Chapter 13 bankruptcy lawyer like Kennedy Williams can help you determine if this is the best approach for your situation. Below, we outline the role of your attorney and what you can expect when pursuing Chapter 13.
