Can you no longer pay your debts? Nobody wants to file Bankruptcy. However, sometimes Bankruptcy becomes necessary to start over. Sometimes life throws hardships in our paths or we financial mistakes. Whatever the case, the very first thing to do is to consult with your experienced bankruptcy attorneys at Whitten & Whitten. Experts recommend seeking legal advice because bankruptcy has lasting legal and financial consequences. You need the advice and guidance from Whitten & Whitten to help you rebuild your life.
Chapter 13 Bankruptcy:
- Bankruptcy helps people suffering under the weight of debt get a clean start.
- All cases are handled within federal courts.
- A Chapter 13 bankruptcy, also referred to as a wage earner’s plan, allows individuals with an income create a plan to repay all or some of their debts.
- Anyone is eligible for Chapter 13, but must have unsecured debts a less than $394,725 and secured debts are less than $1,184,200 (uscourts.gov)
- Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years (uscourts.gov)
- A bankruptcy case typically starts when a debtor files a petition with the bankruptcy court. A petition can be filed by a single person or by spouses.
- Your lawyer can help you navigate the financial consequences.
- With Chapter 13, a debtor can save their homes from foreclosure.
- A debtor will have no contact with creditors throughout Chapter 13 proceedings.
- Chapter 13 is similar to a consolidation loan, where the debtor makes manageable payments to a trustee, and the trustee makes payments on their behalf.
- The debtor must provide the court a list of assets and liabilities, current income and expenses, a list of contracts and unexpired leases, and a statement of all financial affairs.
- The debtor must undergo credit counseling and provide a copy of the certificate to the court.
- A new debt cannot be added (without the permission of their trustee) during the repayment plan process because it may jeopardize the debtor’s ability to follow the plan.
- The bankruptcy law regarding the scope of the chapter 13 discharge is complex and has recently undergone major changes. Therefore, debtors should consult competent legal counsel prior to filing regarding the scope of the chapter 13 discharge (uscourts.gov)
Even with this simplified guide, there is much more to Bankruptcy. The process is often confusing and stressful, but you don’t have to be alone. Call 219-763-6012 today for a free consultation.