Chapter 13 bankruptcy allows individuals to seek legal guidance to reorganize their debt repayment structures and pay off their debts in a three-to-five-year time frame. We can provide legal advice to help you understand your options and your rights when you need financial relief from pressing bills. Unlike Chapter 7, when you file for Chapter 13, you do not have to qualify with a means test. Many people who do not “pass” the means test choose to file Chapter 13 bankruptcy.
THE PROCESS OF FILING FOR CHAPTER 13 BANKRUPTCY
For your initial consultation with your bankruptcy attorney, you will need to provide your income, expenses, creditor information, and tax reports. Our knowledgeable and resourceful bankruptcy attorneys can help you determine the best debt-relief option for you. After your bankruptcy petition is filed, your creditors will be notified, and an automatic stay will prevent collection efforts.
A repayment plan will be developed based upon your current financial circumstances and negotiations with your creditors. The court will appoint a trustee to oversee the repayment plan approval and administration. Monthly payments will be made directly to the trustee, who will, in turn, distribute the money to your creditors to be applied to your debt. If any unsecured debt remains after you have met all the terms of the plan, it will be discharged. Throughout the process, your attorney can ensure you receive the best terms for your repayment plan and that your creditors do not attempt to collect your debt outside of the established bankruptcy boundaries.
TYPES OF DEBT EXCLUDED IN CHAPTER 13
An attorney can help you determine exactly what can and cannot be included in your bankruptcy petition. Some examples of excluded debt include:
- Child support or alimony
- Student loans
- Certain types of taxes
- Homeowners’ association fees
- Criminal fines and penalties
CONTACT US FOR BANKRUPTCY GUIDANCE
The attorneys at Foshee & Yaffe want to help you make the right decision for you. If you face overwhelming debt, you can suffer severe stress and other health concerns as a result. Seek the answers you need with our firm. Contact us today for a free initial consultation.