CHAPTER 13 BASICS
Chapter 13 Bankruptcy – Repair, Recover, Renew
Chapter 13 is an option for individuals wishing to repair their credit, recover their financial freedom, and renew their lives. Businesses and sole proprietorships may not file Chapter 13 under the business’s name; instead, the individual owner may qualify for Chapter 13 bankruptcy.
What is Chapter 13 Bankruptcy? Do I Qualify?
Chapter 13 is an interest-free repayment plan that allows you to combine your debts and repay all or part of them while protecting you from creditor harassment. This is an excellent alternative for individuals who do not qualify for Chapter 7, as it still provides an option for a debt-free future. Chapter 13 is perfect for debtors with assets and/or incomes that would not be exempt in a Chapter 7 filing.
In order to qualify for Chapter 13 bankruptcy, you will have to prove to the bankruptcy court that you have the necessary income, after figuring in certain allowed expenses and payments on secured debts, to meet your repayment obligations. Such allowed expenses and required payments include, but are not limited to, car loan and mortgage payments and other living expenses. You and your The Law Offices of SavedMe.com attorney will work together to create a repayment plan. Your plan to pay back your debts must include the ability to pay off certain debts in full or the judge will not approve your case.
Now would be a great time to meet with a The Law Offices of SavedMe.comattorney in order to see if you qualify for Chapter 13 bankruptcy!
Debts that are not discharged in a Chapter 13:
- Debts incurred through fraud, such as lying about your income on a credit application
- Child and spousal support
- Most taxes
- Most student loans
- Debts that you forgot to list on your bankruptcy papers
- Debts for personal injury and death caused by your driving a motor vehicle while intoxicated
- Debts you never intended to pay back (such as debts took on near in time to filing bankruptcy, a cash advance that wasn’t paid back, debt taken on after meeting with a bankruptcy attorney)
- Debts for personal injury incurred through willful or malicious harm
- Criminal fines and penalties.
There are other debts that may not be dischargeable in a Chapter 13 Bankruptcy filing; however, some debts that are not dischargeable in a Chapter 7 may be dischargeable in a Chapter 13. Consult with your attorney to see which specific debts are dischargeable, and which bankruptcy plan is best for your situation.
*No attorney should ever guarantee the discharge of a specific debt.
The lawyers of The Law Offices of SavedMe.com, can help you determine if chapter 13 bankruptcy is right for you. To schedule a free consolation, contact us toll free at 1-800-SAVEDME
What can Chapter 13 do for me?
Besides offering you a debt-free future and ending stressful and humiliating financial burdens, filing Chapter 13 bankruptcy can:
And it all can begin today! Contact us for your initial consultation so that a The Law Offices of SavedMe.com attorney can be assigned to you immediately.
Chapter 13 Is Right for Me – What Happens Next?
You and your The Law Offices of SavedMe.comn attorney will begin to prepare documents and forms to present to the bankruptcy court judge for approval:
- Schedules of assets and liabilities
- Schedule of current income and expenditures
- Schedule of executory contracts and leases
- Statement of financial affairs
You will also be required to attend credit counseling and obtain a certificate and a copy of any debt repayment plans developed through your credit counseling course; although your The Law Offices of SavedMe.com attorney will be instrumental in helping you to prepare a proposed repayment plan. You must provide evidence of payment from employers received 60 days before filing. This is important since Chapter 13 requires you to have the income resource to repay some of your debts.
Filing Your Petition:
Once you have filed your petition and plan, the court will issue an “automatic stay” barring creditors from attempts at collecting debts or taking further legal actions against you. At this time, a Trustee will be appointed to your case.
Meeting of Creditors:
The court will set a date for a hearing, also called the Meeting of Creditors. The Trustee assigned to your case will run the meeting and will also verify any of the answers that you provide. Question subjects may include income, expenses, property, past earnings, and the schedule of repayment. This meeting is mandatory and you will be required to answer questions regarding your financial situation. Your The Law Offices of SavedMe.com attorney will attend with you and assist you through the hearing. The Trustee will then decide whether or not to recommend to the judge that your plan be confirmed (approved).
The court will notify you of the date for the confirmation hearing. This hearing will be for the judge to determine and rule as to whether your plan should be confirmed and allowed to proceed. Your creditors are allowed to attend this hearing in order to offer any objections they may have regarding your case and/or plan. While most bankruptcy meetings are mandatory for you to attend, the confirmation hearing usually does not require your presence. Once your plan is confirmed, your repayment schedule can commence and your new life can begin. You will pay your monthly payment to your Trustee, who in turn will make the payments to the necessary creditors. No more stressful financial burdens looming over your head.
The Law Offices of SavedMe.com, is an experienced bankruptcy firm, dedicated to tending to clients’ needs and helping to educate them about the hope that bankruptcy offers. We have your best interests at heart. Contact usor call 1-800-SAVEDMEtoday, and make the choice to take back your life!
What will Chapter 13 do for me?
Many of the benefits derived from a Chapter 13 cannot be obtained through the filing of a Chapter 7 Bankruptcy. Some of the many benefits that may be reaped from a Chapter 13 are as follows:
- Stop a finance company from repossessing your car and make the back payments over a period of time
- Stop foreclosure proceedings against your property and pay off the back balance gradually. Such an extension is also available on back taxes
- If your monthly payments on contracts are too large, you may be able to lower the monthly payment and possibly the interest rate
- Depending on your circumstances, you may be able to pay the unsecured creditors far less than 100 percent of their claims — with no interest after the date of filing
- In most instances, you can stop any more interest from continuing on unsecured debts
- Possibly keep property that would have otherwise been given to your creditors in a Chapter 7
- Stop collection activities against a person who cosigned a loan for you
- Force a creditor to take back its collateral in full satisfaction of the claim
- End further obligations to creditors whose services you have not fully received, such as health clubs, dance studios, correspondence courses, leases, etc.
- For debts incurred before you filed your bankruptcy petition, no one can bother you, sue you, garnish your wages, or repossess property without court approval
- Void certain liens against your household goods and against some other personal items
- Possibly pay extra into the plan to get it paid off sooner
- If there is a major change of circumstances, you can propose changes to your plan that would help you complete it.
How do I get started?
The first step in the process is finding an experienced bankruptcy attorney.
Considering the complexity of Chapter 13 itself, and the further complications offered by the reforms in The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, you want to find a professional who specializes only in bankruptcy.
More than anything, we look forward to helping you get a fresh start so that you can start living your life again. Please contact us now at 1-800-SAVEDME to talk to us about your situation. Alternatively, you can get started by completing ourfree case evaluation form.