Chapter 13 Bankruptcy
Consolidate Your Debt and Get Back on Track
Chapter 13 Bankruptcy allows individuals with stable income to repay their debt in a single, manageable monthly installment arrangement. This can include all of your debts or just those debts you are able to afford depending on your individual circumstances. Chapter 13 has helped thousands of people save their homes and cars from foreclosure and repossession. A Chapter 13 repayment plan will last anywhere from 3 to 5 years depending on your debts, income, and expenses. Chapter 13 is a stable, court-ordered repayment agreement administered by a Chapter 13 Trustee that helps individuals retain their property while repaying their debts in a structured agreement that is affordable.
How Does a Chapter 13 Repayment Plan Help?
In a Chapter 13 repayment plan many debts will not receive any interest. This means that you only repay most creditors what you owe them as of the day of filing, with no additional interest. Secured loans, such as automobile loans, will generally receive a reduced interest rate. It is even possible that some secured loans will be reduced to the value of the collateral only (a "cram down"). Similarly, in certain cases it is possible to eliminate a second mortgage from a residence.
The Chapter 13 Process
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Paystubs and Debts. Bring your last 60 days of your paystubs and gather the last two years of your federal tax refunds. If you bring these items, our attorneys and staff will handle the rest of the paperwork!
Meet our attorney at one of our locations. One of our attorneys meets with you to review your paperwork, answer your questions, and make sure filing bankruptcy will meet your personal goals.
Complete credit counseling courses. Prior to filing your Chapter 7 case, you must complete a brief credit counseling session, and after your case is filed you need to complete a financial management course. Both sessions are available online or by phone. Our firm relies on Access Hope for the credit counseling session, and Dave Ramsey's Debtor Education for the financial management course.
Meeting of Creditors. After your case is filed, you will need to attend a meeting with a court appointed trustee approximately 30 days after filing. The court will assign the date and time and one of our attorneys will attend with you. At this meeting the trustee will briefly review your case.
Confirmation of Repayment Plan. Our attorneys work with the Chapter 13 to get the court to approve your repayment plan. You do not need to attend this hearing in most cases.
Discharge. You will receive an Order from the court Discharging your debt and closing your case approximately two to three months after your Meeting of Creditors.