Chapter 13 bankruptcy is a solution that offers help to people who have regular income, but nevertheless suffer from a large debt. A plan under Chapter 13 gives you a window of three to five years of opportunity to catch up on past due payments. And still, some remaining debts can be downloaded at the end of the plan.
In most bankruptcy cases under Chapter 13 (as in most cases in Chapter 7), an automatic stay is enacted as soon as the bankruptcy case is filed. This stay is a court order that immediately stops all calls, lawsuits, debt collection letters and wage garnishments from creditors, among other things. That is enough stress that can be eliminated from your life in a few days of legal work and definitely much better than suffering everything indefinitely.
Basic Bankruptcy Concepts under Chapter 13
Bankruptcy under Chapter 13 is designed to give people with high levels of guaranteed debt or valuable property the respite they need to manage their debts and maintain their property.
How Chapter 13 Works
Similar to a chapter 7 bankruptcy case, the lawyer in charge of your case prepares various petitions and forms for the bankruptcy court to use, detailing your debts, assets and income. For greater security, a bankruptcy trustee is assigned to supervise your case. After that, your bankruptcy attorney will work with you to present a payment plan to the court. With this approved plan, you will be able to disperse overdue debts within a period of three to five years, while paying the current debts as they arrive. In many cases, you may not have to pay all of this debt, since in many cases unsecured debt is discharged at the end of the payment plan.
After this is said and done, the trustee and his creditors will have the opportunity to object after reviewing the plan. After approval, to keep your property and make a payment plan free of the hungry and relentless creditors and their attempts to cheat you to get ridiculous amounts of money from you.
The Bankruptcy Download
For most Chapter 13 cases, some unsecured debts are discharged, which means that you are not legally obligated to pay that debt. But even if he manages to get rid of that debt, his situation hardly improves if the creditors continue to stalk him. To avoid that scenario, the court enters into a court order that effectively prohibits creditors and collectors from attempting to collect the liquidated debt, so you can definitely get rid of those annoyances.
If that is not enough to give you peace of mind, the companies that allow your creditors and collectors to violate the amparo are violating a court order. If this happens, you can reopen the bankruptcy case, and in some cases the creditor must compensate you for your illegal actions.
The idea is not only for you to complete your bankruptcy case, but also to help provide the opportunity for a real change in your life. We know as well as you know that such a thing can not happen if the creditors and collectors are trying to overstep the law in their attempts to get more money out of their tight budget, so that all of our clients are offered a post credit report audit. -discharge. If a creditor or debt collector is trying to ruin your new beginning of financial stability through the submission of inadequate credit reports or other illegal actions, we take prompt action on the matter and hold the creditor responsible for their crimes.
Eligibility for Bankruptcy under Chapter 13
Passing the means test is not necessary for chapter 13 bankruptcy. The main eligibility requirements are simple:
You must have less than $ 383,175 in unsecured debt and less than $ 1,159,525 in secured debt; Y
You must have regular income from which the payment plan will be made.
Registering a Chapter 13 Bankruptcy
If you decide to enter a Chapter 13 bankruptcy plan, you are making a commitment to do three different and very important things. You will commit to a financial plan of three to five years in order to let you pay your past debts, you will commit to protect your property and ensure stable bases for your fiscal future. Since it is so important to your life, it is imperative that you secure a lawyer who is well educated in all the particulars of a Chapter 13 bankruptcy.
That said, our firm has successfully represented more than 100,000 consumers in a wide range of bankruptcy cases. Our main objective is to help people to train better future prosecutors for themselves and their families. Our holistic approach includes many benefits and services for you and your family members, including but not limited to an assessment of your personal financial situation, litigation of consumer financial protection in cases that require it, education to better help you Get a credit rating of 720 credit, and track your bankruptcy discharge to keep it safe from collectors and your creditors who illegally want to get a benefit from you.