Chapter 13 Bankruptcy Attorneys

We often associate bankruptcy with someone who has fallen on hard times and is unable to make payments. While this may be true in many situations, there are circumstances in which a person has a steady stream of income but still accrues debt.

If this sounds like your situation, you may want to consider filing for chapter 13 bankruptcy. Coined a wage-earner’s plan, chapter 13 bankruptcy may be a viable option for anyone that earns a regular income but is still unable to pay debt collectors. It is used by individuals for consumer debt.

If you are facing excessive debt or foreclosure on your home, you should consider speaking with a Chapter 13 bankruptcy attorney today.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy permits individuals who earn a regular income the ability to create a repayment plan. The plan may pay a portion or all of their debt. Chapter 13 bankruptcy can also stop foreclosure proceedings with an automatic stay being issued by the court. In filing for Chapter 13, you will be given the opportunity to create a repayment plan that allows you to become current on any past-due payments.

Chapter 13 Eligibility

There are many requirements in order to be eligible to file Chapter 13. The most important requirement is to have a steady source of income. Income does not necessarily have to be from employment and can be through support, family support, or domestic support. To be eligible, an individual must receive credit counseling from an approving credit counseling agency within 1800 days of filing a petition.

When is My Repayment Plan Due?

Under Chapter 13, a repayment plan will be due within 14 days of filing the petition. You also have the option of submitting the repayment plan with your petition. You must start making payments no later than 30 days after filing your repayment plan.

As in other bankruptcy filings, the court will appoint a trustee to oversee the management of funds. In a Chapter 13 case, the trustee will collect payments from you on a periodic basis and disperse funds to the creditors.

Assistance in Lowering Debt Payments

Chapter 13 restructures your debt so that you can make smaller payments over a longer period of time. In most cases your debt will need to be repaid. After repaying a certain amount of debt, you will likely be able to discharge the remainder. Our Chapter 13 bankruptcy attorneys will review your debts to determine which of your debts qualify for discharge and help you develop a repayment plan. Our detail-oriented and thorough approach ensures that you will be successful in carrying out the conditions of your repayment plan.

Consult with a Chapter 13 Bankruptcy Attorney Today

If your debt is threatening your future and putting your home at risk of seizure, filing for chapter 13 bankruptcy may be the answer. If you are interested in learning more, speak with our bankruptcy attorneys today. We can be reached online.