Chapter 13 Bankruptcy Attorney
No Money Down To File Your Case
One reason a great majority of people file Chapter 13 bankruptcy is to save their home or car. Chapter 13 bankruptcy allows someone who has fallen significantly behind on one of these to become current over a period of 3 to 5 years as opposed to the short time the creditor would normally allow. Furthermore, Chapter 13 bankruptcy stops foreclosure and/or repossession, in most cases, giving a person the opportunity to get back on their feet.
Occasionally, individuals do not qualify for Chapter 7 bankruptcy and turn to Chapter 13 bankruptcy. In Chapter 13 bankruptcy, the debtor repays creditors either a portion or the entire amount of the debt owed.
While Chapter 7 can accommodate people with homes and vehicles, a small percentage of individuals have substantial equity in their homes or cars or make too much money, according to the IRS standards, to qualify for a Chapter 7. Filing bankruptcy under Chapter 13 can still relieve these individuals of a substantial financial burden because they are usually able to pay back only a percentage of the debt owed.
Together with a lawyer, a Chapter 13 debtor proposes a repayment plan to the court. Payments into this plan are made to an appointed trustee in bankruptcy who then distributes the money to creditors. Among several other factors, the IRS guidelines help determine how long a plan must last, but the attorney has a good deal of discretion in making sure the Chapter 13 meets your needs and budget. The plan payments include all monies owed to secured and unsecured creditors, trustee fees, attorney’s fees and court costs.
There is only one payment to make each month in order to cover everything, including mortgage arrears and car payments. The payment plan is designed to fit the Chapter 13 debtor’s budget so that it is comfortable to pay. After the debtor successfully completes the plan, with only a few exceptions, the debtor is relieved of debt entirely.