Chapter 13 Bankruptcy
Chapter 13 Bankruptcy creates a re-payment plan that lasts three to five years, depending on your specific situation.
Chapter 13 Bankruptcy can stop a foreclose on your home and even give you a chance to catch up on mortgage arrears. To qualify, you must have a steady source of income, such as from a job, self-employment, a business, retirement income, or social security.
Chapter 13 Bankruptcy Plans must be approved by the Bankruptcy Trustee and the Bankruptcy Court. It can be complicated. Here At the Law Offices of Barbara B. Braziel we have filed thousands of Chapter 13 cases. You will be in experienced and capable hands with us.
It is our mission to ensure that you understand the power and benefits of Chapter 13 bankruptcy.
Benefits of Chapter 13 Bankruptcy
- Stops wage garnishments, stops lawsuits filed by creditors, stops harassing creditor phone calls, and stops automobile repossession.
- Can stop foreclosure and allow a homeowner to catch up on mortgage arrears.
- In some cases, allows a homeowner to “lien strip” or eliminate a second mortgage.
- Creates an opportunity to catch up on missed car payments.
- Creates an opportunity to catch up on other missed payments, such as back taxes or child support payments.
- At the conclusion of the Bankruptcy, any remaining credit card debt, medical bills, or other unsecured debts, and some tax debts, are discharged.
Drawbacks of Chapter 13 Bankruptcy
- Requires monthly payments to the Bankruptcy Trustee. We all understand that unforeseeable things happen. If a plan payment cannot be made, there are processes to address it.
- You cannot take out a loan while in Chapter 13 Bankruptcy without prior permission from the Bankruptcy Court.
- Student loan debts are generally not discharged.
- Depending on your specific case, you may still owe some debts after bankruptcy, such as tax debts.
Costs of Filing Chapter 13 Bankruptcy
The costs associated with filing for Chapter 13 Bankruptcy include: court filing fees, mandatory credit counseling fees, and attorneys fees. In our district, we have what is called a “no look” fee, meaning that the attorney’s fees are set by the Bankruptcy Court.
Since Chapter 13 creates a monthly payment plan, the attorney’s fees can be paid from those payments. When we meet for a free consultation, we will go over all of the costs. There will not be any surprise fees or costs down the road.
Chapter 13 Bankruptcy is a powerful tool that can help you save your house, catch up on missed payments, and eliminate unsecured debts like credit card debt.
We are here to help you understand the process and decide if filing for relief under Chapter 13 is the right choice for you. Contact us today to schedule a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.