Chapter 13 bankruptcy is a powerful legal tool that offers a number of advantages to a debtor. Under this chapter you can  catch up on mortgage arrears, missed car payments, back taxes, and other debts.

To obtain the benefits of Chapter 13, there are a number of things you must do during the course of your bankruptcy. So long as you do the things required of you in a Chapter 13 bankruptcy you can get all of the benefits. The following are four things that you must do. While this list is not exhaustive, it covers the basic requirements.

Make your plan payments.

Chapter 13 bankruptcy creates a three to five year repayment plan. You must make your plan payment on-time every month.

File your personal income tax return on time.

While you are in Chapter 13 bankruptcy you have a duty to file your personal income tax returns on time. Also, if you are entitled to a tax refund most Chapter 13 plans require you to turn that refund over to the Bankruptcy Trustee to distribute to your creditors.

Avoid taking on new debt.

You are precluded from incurring new debt while you are in Chapter 13 bankruptcy. If you do need to take on new debt, like getting a loan because you truly need a new car, then you must ask permission from the Bankruptcy Court. So long as you can show a genuine need and purpose for incurring new debt, the Court may approve.

Be transparent about your finances.

In any bankruptcy filing you have a duty to be transparent about your finances. This includes your income and expenses. While it may feel vulnerable to be transparent about your finances, the trade-offs are the vast benefits of bankruptcy.

The 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 certain tax debts, are discharged.

 

Filing for Chapter 13 Bankruptcy

It is our mission to ensure that you understand the power and benefits of Chapter 13 bankruptcy. We’re here to answer all of your questions. Call us right now (912) 351-9000 to schedule a free consultation.

 

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We proudly serve the people of Savanna, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Springfield, Pembroke, Brooklet, Garden City, and Ludowici, Georgia.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.