Chapter 13 bankruptcy offers a solution for people who have regular income, but are overburdened with debt. A Chapter 13 plan allows you to catch up past-due payments during a three to five year repayment plan. At the end of that period, some remaining unsecured debt may be discharged.
In most Chapter 13 bankruptcy cases (as in most Chapter 7 cases), an automatic stay is entered as soon as the case is filed. The automatic stay is a court order that puts an immediate stop to creditor calls, debt collection letters, law suits and even wage garnishments. When you take action to turn your finances around, the pressure could be off in just a few days.
Chapter 13 bankruptcy is designed to give people with high levels of secured debt or valuable property get the breathing room they need to manage their debts and keep their property.
Just as in a Chapter 7 bankruptcy case, your attorney will prepare petitions and schedules that detail your income, debts and assets for the bankruptcy court. And, the court will appoint a bankruptcy trustee to oversee your case.
Then, you and your bankruptcy attorney will submit a payment plan. The payment plan will allow you to spread your past due balances over a three to five year period, while making current payments as they come due. The plan may or may not require you to pay 100% of your unsecured debt; in many cases, some unsecured debt is discharged.
Your creditors and the trustee will have the opportunity to review the plan and make any objections. Once your plan is approved, you keep your property and make scheduled payments without demanding creditors vying for your dollars or outrageous late charges and other fees inflating your balance and putting you further behind.
In many Chapter 13 cases, some unsecured debt is discharged, which means that you’re no longer legally obligated to make payment. Of course, having debt legally discharged won’t help if creditors and debt collectors continue to harass you. That’s why the court enters an injunction prohibiting creditors and collectors from attempting to collect discharged debt.
If a creditor or debt collector ignores that injunction, that company is violating a court order. When that happens, we can reopen the bankruptcy case; in some cases, the creditor will be required to pay you money damages for violating the discharge.
Our goal is not just to get you through your bankruptcy case, but to make a real difference in your life. We know that can’t happen if creditors and debt collectors are ignoring the law and continuing collection attempts. So, we offer all of our clients a free post-discharge credit report audit. When we find that a creditor or collector is jeopardizing your fresh start with illegal activity or inappropriate credit reporting, we take quick action to correct the problem and hold the creditor accountable.
Passing the means test isn’t required to file chapter 13 bankruptcy. The primary eligibility requirements are simple:
When you enter into a Chapter 13 bankruptcy plan, you’re making a three to five year financial commitment designed to help you catch up, protect your property and get on stronger footing for the future. It’s important that the lawyer who represents you is well versed in the intricacies of Chapter 13 bankruptcy.
The partners in our firm have successfully represented more than 100,000 consumers in bankruptcy matters. Helping consumers build brighter financial futures is all we do. Our holistic approach includes an assessment of your personal financial situation, consumer financial protection litigation when warranted, education to put you on the path to a 720 credit score and monitoring of your bankruptcy discharge to protect you from unscrupulous creditors.
The partners in our firm have successfully represented more than 100,000 consumers in bankruptcy matters. Helping consumers build brighter financial futures is all we do. Our holistic approach includes an assessment of your personal financial situation, consumer financial protection litigation when warranted, education to put you on the path to a 720 credit score and monitoring of your bankruptcy discharge to protect you from unscrupulous creditors. With our online anywhere counseling, UpRight can put you on the path to financial freedom without complicating your schedule.
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