Personalized Legal Guidance to Help You Regain Your Financial Footing
Chapter 13 is one of several options available to individuals that allows you to both reorganize and eliminate your existing debts. It is a common misunderstanding and myth that a Chapter 13 requires you to pay all of your unsecured debts. Chapter 13 is a good option for those who don’t qualify for a Chapter 7 and/or who seek to protect assets and reorganize their repayment. As an experienced attorney can better help you evaluate your options and build a strong Chapter 13 case. Southeast Bankruptcy, LLC has worked on more than 2,000 successful cases, and we strive to provide our clients with the most affordable path to bankruptcy protection. In fact, we have no up-front attorney fees for certain Chapter 13 wage earners. We will provide personalized legal guidance for your unique case and lay out your options for you to make an informed and appropriate decision. Let’s restructure your financial health and help you maintain solid financial footing today.
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There are several requirements you must meet in order to file Chapter 13 bankruptcy, also called a “wage earner’s plan.” To qualify, you must:
- not exceed a certain amount of secured and unsecured debts;
- have a steady income that allows you to meet both your monthly household obligations and pay into a proposed repayment plan (below);
- not be a business entity, as only individuals can file Chapter 13.
Once you hire us, you’ll finally be able to breathe deeply and relax. We will represent you with compassion, dignity and respect. We handle it all so you can focus on your new beginning in life!
We truly strive to work with our clients to find the most affordable path to bankruptcy protection including a no up-front attorney fee Chapter 13 for certain wage earners.
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Although we will certainly make our recommendations and why, we will not force anything upon our clients. You will be provided with all the information and alternatives for you to decide.
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The core component of a Chapter 13 case is the repayment plan, which you will propose to your creditors and the court. The plan, which covers a repayment period of 3-5 years, should address how you will handle each of your debts. Our goal will be to structure a plan that reorganizes and provides for full payment of those assets you wish to keep while eliminating as much, if not all, of your unsecured debts. We may be able to reduce both how much you pay on your secured debts and the interest rate you are paying.
The court will approve the plan at a confirmation hearing before the plan goes into effect. Once there are no more objections to the plan, the judge will confirm your proposal if:
- the plan is feasible (you have enough income to pay the creditors back as stated);
- you proposed the plan in good faith; and
- the plan complies with bankruptcy law.
After confirmation, you should complete your 3-5-year repayment plan before any of your debts are discharged. Some examples of the debts you will repay in Chapter 13 include:
- priority debt (e.g., child support, alimony arrearages, tax obligations);
- secured debt (e.g., car loans or mortgages if you seek to keep these assets);
- unsecured debt (e.g., credit card balances, medical bills);
- value of nonexempt property.
Note that you may not need to fully repay your unsecured debts; you merely need to show that you are making an effort to put any remaining income towards their repayment.
After completing your repayment plan, you must show the court that you are current on your child support and alimony obligations and that you have completed a required budget counseling course. After this, the remaining balance on your qualifying dischargeable debts gets wiped out, and you should be debt-free aside from any non-dischargeable debts (e.g., student loans).
In some situations, a debtor’s income might change significantly, especially as repayment plans can span years. If your income decreases, you might be able to modify the amount being paid to your unsecured creditors. If you are unable to pay a required debt, the court might let you discharge your debts due to hardship, such as if you’ve experienced a debilitating illness. Otherwise, you might have to dismiss your Chapter 13 case or convert to Chapter 7 bankruptcy, though this could risk the liquidation of certain nonexempt property. An experienced Chapter 13 attorney can better help you understand your options if this becomes a reality.
Let Southeast Bankruptcy, LLC Help You File Chapter 13
Debtors have a few different bankruptcy options depending on their situation. Chapter 13 is a good option if you do not wish to liquidate your assets, which is a possibility with Chapter 7. Chapter 13 is one of the more complex bankruptcy processes, as it requires you to build a feasible repayment plan that your creditors may object to. It is a good option, however, for you to slowly regain your financial footing as you work on repaying your debts over a period of time. For more information on how Chapter 13 works, visit our FAQ page here. Otherwise, do not hesitate to reach out to our season Chapter 13 bankruptcy lawyer in West Palm Beach to get started on your Chapter 13 filing today.
Let us help you toward financial freedom and a debt-free future. Schedule a free consultation with Southeast Bankruptcy, LLC today.