Chapter 13 Bankruptcy
Do you have a job with somewhat steady income, yet are still overwhelmed by your debt? If so, seeking Chapter 13 bankruptcy protection may be a wise decision. Chapter 13 bankruptcy can help you get a fresh financial start by liquidating many of your debts and helping you organize a sensible debt repayment plan.
Find a qualified Chapter 13 bankruptcy attorney
A family lawyer or someone from the yellow pages may not be familiar with all the forms, filings, requirements, schedules, distributions and deadlines associated with the bankruptcy process. The bankruptcy laws can be very confusing and by seeking an experienced bankruptcy attorney you may save yourself a lot of time and stress. A bankruptcy lawyer can help you assess your financial situation, explain the bankruptcy process and guide you through a plan to repay your debts to your best ability.
Pre-Filing Requirements
An approved credit counseling agency must give you a briefing before your bankruptcy petition is filed. They will also explain options available to you and help you do a budget analysis. Your bankruptcy attorney will direct you to the appropriate credit counseling agency.
Your Chapter 13 Bankruptcy Case officially begins with the filing of your bankruptcy petition
The Chapter 13 case starts off with the preparation and filing of your bankruptcy petition. You are required to give personal information about yourself, your spouse, your family, all of your income, your property, your expenses and all of your debts. Soon after your petition is filed, the bankruptcy court clerk will send out a note to your creditors about your case. Next, your case will be assigned to a bankruptcy trustee who reviews you case. An automatic stay order is often issued which prohibits most of your creditors from collecting your debts, repossessing your automobile or other property, or starting any legal actions against you throughout the course of your bankruptcy case.
The centerpiece of your Chapter 13 bankruptcy case is your repayment plan
Your repayment plan is an understanding between you and your creditors. As long as you show your commitment to repaying all of your debts over time, your creditors will agree to forgive some of your debts. You will make payments each month to your appointed bankruptcy trustee, who then makes payments to your creditors. Usually the plan will last three to five years. As long as you make these payments, the creditors are required by law to abide by the rules of your repayment plan.
A financial education course is required before your bankruptcy discharge is entered
You are required to complete an instructional course about personal financial management by The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Your bankruptcy lawyer can direct you an appropriate class.
Not all debtors qualify for Chapter 13 bankruptcy
Not everyone will qualify for Chapter 13 bankruptcy. However if you satisfy the following three requirements, Chapter 13 may be the right choice for you:
- You must have a "stable and regular" source of income, since you have to be able to meet the terms of your bankruptcy repayment plan.
- You must have sufficient "disposable income" to enter into a reasonable repayment plan.
- Secured debts, including loans you have secured by liens on your property (like home and auto loans or IRS tax) must not be higher than $922,975. Your unsecured debts (debts that you haven't pledged any of your property as collateral for, like credit card debt, personal loans and utility bills) must not be higher than $307,675.
If you do not meet these requirements you do not qualify for Chapter 13 bankruptcy. But don't panic, because you can probably still qualify for Chapter 7 bankruptcy!
Obviously you will need to consult with your bankruptcy attorney to determine which form of bankruptcy is the right fit for you. Your income, expenses and overall nature of your debt will play a big role in deciding. Typically a Chapter 13 bankruptcy case will be better for you than a Chapter 7 bankruptcy if:
- You are behind on payments for your property that you wish to keep after bankruptcy
- You have tax debts. (Under Chapter 7, many tax debts are not dischargeable. However under the Chapter 13 bankruptcy plan, you have the opportunity to repay them over time.)
- You have nonexempt property that you want to keep (With Chapter 7 you may be forced to give up this property; however Chapter 13 bankruptcy may allow you to keep it.)
- You have already received a Chapter 7 bankruptcy in the past eight years (You cannot file Chapter 7 bankruptcy more than once in eight years.)
- You want to protect cosigners on your debts.
- You want to consolidate your student loans (Chapter 13 bankruptcy allows you to incorporate them in your repayment plan.)
Ready to start fresh through Chapter 13 bankruptcy?
Do not let the "shame" of filing bankruptcy stop you! Millions of Americans have turned to bankruptcy for guidance and rebuilt their lives. The times have changed and you owe it to yourself to explore the opportunity to receive a clean slate and a fresh start.
Call (877) 349-1309 and speak with one of the experienced bankruptcy attorneys that sponsor Total Bankruptcy. They can assess your financial condition and explain your options.
Or feel free to fill out one of our secure and confidential online case evaluation forms now. Simply fill out the form with information about your financial situation and one of the sponsoring attorneys will contact you to schedule a free, no-obligation consultation.
End the creditor harassment and sleepless nights today by contacting an attorney to work on getting you a fresh start.