How a Chapter 13 Bankruptcy Attorney Can Help You

By consulting with a Chapter 13 bankruptcy attorney, you can quickly find out if you are eligible to file. The different types can be difficult to understand without the guidance of an experienced lawyer. This particular type is ideal if you are interested in restructuring your debts into a more manageable payment schedule. Notably, it allows you to keep your valuable property instead of liquidating it to repay your debts.

Chapter 13 is a good option if you have a steady source of income, but you have simply fallen behind on some payments. With this process, you can prevent a foreclosure on your home or repossession of your vehicle. Instead of losing your home or car because of overdue payments, you can reorganize your debts into a 3 to 5-year payment plan. Once you have officially filed the petition, the court issues an automatic stay. This court order prohibits any continued collection efforts from your creditors, such as wage garnishment, harassing phone calls, repossession, and foreclosure. Even if foreclosure proceedings have already begun, they will usually stop once your petition is filed.

Your lawyer will guide you through the process and make sure you complete the necessary educational courses, such as a financial management course and credit counseling briefing. The Credit Counseling Briefing is especially important and must be completed before the petition is filed. Failure to complete the Credit Counseling Briefing can result in a dismissal of your case, or it can allow creditors an opportunity to continue collection efforts during your case. The financial management course, or Debtor Education course, must be completed before your discharge is granted.

Once your petition has been filed, your legal counsel will help you devise a proposed repayment plan to submit to the court. Your plan will include your current income, assets, living expenses, and proposed payments. The proposed payments will go toward the past-due amounts that you owe, but you will also need to continue making current payments. Your lawyer will help you create a plan that you can actually manage without falling behind. He or she will also make sure the proposed repayment schedule is filed in court within the 15-day deadline. If the court approves your plan, you will then make scheduled payments to a single court-appointed trustee. The court will prioritize your debts, and your payments will go to secured creditors first.

Typically, the repayment schedule can last between 3 and 5 years. During that time, you will continue to make each necessary monthly payment while also maintaining your current bills. Once you have completed all payments on time, the court may discharge your remaining unsecured debts. As long as you have also completed the necessary Debtor Education course, the court will grant a discharge.

Even after you decide that Chapter 13 is right for you, the entire bankruptcy filing process is quite complicated. You will need the assistance of a well-qualified Chapter 13 bankruptcy attorney to ensure all requirements are met throughout the process. Many law firms offer free consultations to help you determine which Chapter is right for your circumstances.