Reorganize Your Finances With Chapter 13 Bankruptcy
There’s nothing more devastating than the thought of losing something you’ve worked so hard for, such as your home. However, when you’re struggling to get out of debt, you may worry that selling some of your most cherished assets is the only way out. Chapter 13 bankruptcy can allow you to keep those assets and find alternative debt repayment plans. Our attorneys at Springer Larsen Greene, LLC, have been helping clients handle Chapter 13 bankruptcies for years. They can work with you directly to determine if it’s the right option.
Understanding Chapter 13 Bankruptcy Procedure
Most consumer bankruptcy filings are Chapter 7 bankruptcies. Chapter 13 bankruptcy, however, can offer some of the same benefits of Chapter 7 bankruptcy with one key advantage: You can stay in your home. At Springer Larsen Greene, LLC, our lawyers are experienced in handling both types of consumer bankruptcy. They will examine your finances carefully to determine which type of bankruptcy is right for you.
Chapter 13 Repayment Plan
The repayment plan is the central part of a Chapter 13 bankruptcy filing. You create this plan with your attorney outlining how you will repay your secured and unsecured debts over three to five years. Depending on your situation, Chapter 13 bankruptcy may reduce or discharge your debts. You may only have to pay approximately 10% of what you owe for unsecured debt.
The Chapter 13 Bankruptcy Process
Once you file for bankruptcy, a trustee gets assigned to your case. In Chapter 13 bankruptcy, you make payments equal to your disposable income (income minus your expenses) to your trustee. The trustee then distributes your payment to your creditors. When you file your petition in court, you come under the court’s protection, and all creditor collections must cease. You will have to attend a 341 meeting, also known as the “first meeting of creditors,” and complete a financial management course. After your lawyer presents your repayment plan to the judge for confirmation, you can make the payments specified in your plan. When the plan is complete, you will be current on your debts.
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