We often say that Chapter 13 bankruptcy is a powerful debt relief tool. Chapter 13 bankruptcy creates a re-payment plan that lasts three to five years, depending on your specific situation.
Some of the Chapter 13 powers and benefits include:
- Opportunity to catch up on mortgage arrears.
- Opportunity to catch up on missed car payments.
- Opportunity to catch up on other missed payments, such as back taxes or child/spousal support payments.
- The possibility to “lien strip” or eliminate a second mortgage on an underwater home.
- Stops all collection action.
- Stops foreclosure, vehicle repossession, wage garnishments, stop lawsuits filed by creditors and stops harassing creditor phone calls.
Chapter 13 bankruptcy might be the solution to your debt problems. Read on for Chapter 13 keys to success to ensure that your case makes it to discharge!
Make Your Monthly Plan Payments On Time
Your Chapter 13 repayment plan requires monthly payments be made to the Bankruptcy Trustee for three to five years. It is critical that you pay your plan payment on time, every month.
If for some unavoidable reason you cannot make your plan payment on time, contact your bankruptcy attorney immediately. It is possible to ask the Bankruptcy Court for a plan modification if absolutely necessary. It is best to get in front of the problem – do not wait until after you have missed your plan payment to address the problem.
Stay Current on Your Mortgage, Car Payment & Other Obligations
In addition to making your monthly plan payment on time, you must also remain current on your post-petition monthly obligations. Many bills are paid outside of the plan, just as if you were not in bankruptcy. Make sure you talk with your attorney about what monthly payments you must continue to make directly to the lender.
Make your mortgage and car payment(s) on time. Pay other obligations, such as taxes and spousal or child support, on time. Failure to stay current on any of these payments may result in serious consequences.
Understand Your Obligations Under the Chapter 13 Plan
Three to five years is a long time. It is important that you understand your obligations under the Chapter 13 plan. If you have questions about how the plan works or your ongoing obligations, ask your bankruptcy attorney or the Chapter 13 trustee assigned to your case.
If you file your case in the Southern District of Georgia, you will receive a booklet from the Chapter 13 bankruptcy trustee entitled What You Should Know About Your Chapter 13 Case. The very first page of the booklet lists “Keys to Success.” Follow these to a T. The booklet also contains answers to many of the most frequently asked questions.
Chapter 13 bankruptcy plans must be approved by the Bankruptcy Trustee and the Bankruptcy Court. It can be complicated. We’ve filed thousands of Chapter 13 cases. When you hire us, you are in our experienced and capable hands.
If you live in Savannah, GA or the surrounding areas and have questions about your debt relief options or the various chapters of bankruptcy, let’s meet for a free consultation. Please reach out to us at (912) 351-9000 or contact us by filling out this simple web form.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.