CHAPTER 13 IS A REORGANIZATION
A chapter 13 bankruptcy is also called a wage earner’s plan.
It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” (1) If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. § 1322(d). During this time the law forbids creditors from starting or continuing collection efforts.
This chapter discusses six aspects of a chapter 13 proceeding: the advantages of choosing chapter 13, the chapter 13 eligibility requirements, how a chapter 13 proceeding works, making the plan work, and the special chapter 13 discharge.
Begin by answering the following questions as objectively and honestly as possible:
- Am I behind on my car payments?
- Am I behind on my mortgage payments and if so, by how much?
- Are my creditors calling me or my family members?
- Am I borrowing from one credit card to payoff another?
- Am I only making minimal payments on my credit card(s)?
- Am I being sued for failing to pay a debt?
- Are my wages being garnished?
- Is my bank account being seized?
- Do I have any judgment liens on my real state?
If you’ve answered “yes” to any of these questions, you need to consult with a bankruptcy attorney to determine whether a Chapter 7 or Chapter 13 bankruptcy is right for you.
- Stop garnishments!
- Stop repossessions!
- Stop foreclosures!
- Remove flags from driver’s license!
- Stop tax levies!
If you decide to file for bankruptcy, you will need dedicated legal assistance to secure a favorable outcome. For years, our firm has been helping individuals with financial difficulties to find the resolution they need. For the personal attention you deserve, contact our office today! We will work one on one with you at every step of your case.
Your initial consultation is free!
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