To discuss Chapter 13 bankruptcy questions with our bankruptcy attorney, please call us or fill out a Free Evaluation form on our website.

Transcription

1

2 Intrductin This Ebk fcuses n Chapter 13 bankruptcy, hw it wrks, and hw it helps yu eliminate debt and keep yur assets (such as yur hme). We hpe yu find this infrmatin t be helpful. T discuss Chapter 13 bankruptcy questins with ur bankruptcy attrney, please call us r fill ut a Free Evaluatin frm n ur website. What is Chapter 13 bankruptcy? Chapter 13 bankruptcy is named after the sectin f U.S. bankruptcy law dealing with rerganizatin f debts. Essentially, with Chapter 13, yu keep yur prperty (such as hme, vehicles, etc) and create a repayment plan that is apprved by the curt. After successfully keeping up with yur debt payments in this plan ver 3-5 years, all eligible debts are discharged. Here are sme mre imprtant facts abut Chapter 13:

3 What are the qualificatins t file Chapter 13 bankruptcy? If yu d nt qualify fr Chapter 13, yu can still file fr Chapter 7. T file Chapter 13, yu must meet these qualificatins: PRIOR FILINGS: Yu must wait 4 years after filing a prir Chapter 7 bankruptcy r wait 2 years after filing a prir Chapter 13 bankruptcy. DISPOSABLE INCOME: Based n the living expenses and payments yu have (such as hme mrtgage and vehicle payments), yu may r may nt have enugh remaining incme t be sufficient t successfully fund a debt repayment plan. An attrney can help yu calculate whether r nt yu have sufficient dispsable incme fr a Chapter 13 plan. If yu dn t have Time Between Prir Bankruptcy Filings sufficient incme t fund the plan, yu can file fr Chapter 7 bankruptcy instead. Have Sufficient Dispsable Incme DEBT AMOUNTS: Yur debts cannt be t high. As f 2013, yur unsecured Debt Amunts Can't Be T High debt cannt exceed $360,475, while yur secured debt cannt be Current n Incme Tax Payments higher than $1,081,400. Mst peple have far less debt than these amunts, Take a Credit Cunseling Class s this usually isn t an issue in qualifying fr Chapter 13. INCOME TAXES: Yu must be current n yur incme tax filings and must shw prf that yu have filed bth state and federal incme taxes ver the last 4 years. If yu are nt current n yur tax payments, yu cannt file a Chapter 13. CREDIT COUNSELING: Yu are required t take an inexpensive, helpful class n financial and debt management within 180 days befre filing. Hw des the Chapter 13 bankruptcy prcess wrk? Chapter 13 bankruptcy takes abut 3-5 years t cmpletely eliminate yur eligible debts. Here is hw it wrks: DETERMINE ELIGIBILITY: Yu shuld determine if yu are eligible fr Chapter 13. If nt, yu shuld file a Chapter 7 instead. CREDIT COUNSELING: Find a reputable nn-prfit credit cunseling cmpany, take the inexpensive, required class n financial management, and present yur certificate f cmpletin alng with yur bankruptcy paperwrk.

4 FILE PAPERWORK: If yu qualify fr Chapter 13, yu then fill ut and submit the required paperwrk t yur lcal curt. Yu must include accurate infrmatin abut yur incme, secured and unsecured debts, exempt and nn-exempt prperty, assets, living expenses, and ther related financial infrmatin. In additin, yu must prvide recrds f yur recent state and federal incme tax returns. Filling ut the required paperwrk is much easier with an attrney, wh can guide yu thrugh and make sure yu cmplete it crrectly. AUTOMATIC STAY: Once the curt has received and prcessed yur submitted paperwrk, they immediately ntify all f yur creditrs f yur bankruptcy filing. Yur creditrs are then legally prevented frm pursuing yu further fr debt cllectins, evictins, lawsuits, wage garnishments, freclsures, and ther related matters. CREDITORS MEETING: Sn after yur petitin is filed, yu are required t attend a meeting at the curthuse with yur creditrs, trustee (the persn in charge f verseeing yur case), and yur attrney (if yu hired ne). While this meeting is in the curthuse, it is nt a trial. There is n judge present. During this meeting (which usually lasts less than 1 hur), the trustee and creditrs review yur financial paperwrk fr accuracy and dispute anything they find t be inaccurate. Yur attrney can greatly help yu t feel at ease during this part f the prcess as he r she can advise and help yu. CONFIRMATION HEARING: Yu create a repayment plan that utlines hw much each f yur creditrs will be paid and hw much yu will pay each mnth. This plan is presented befre yur trustee, a judge, and yur creditrs in a cnfirmatin hearing in

5 curt, where thse present may dispute r mdify yur repayment plan (if necessary). Mst ften, yur plan is apprved in this meeting. REPAYMENT: Over a 3-5 year perid, yu make cnsistent payments t the curt. These payments g twards yur creditrs, trustee, and attrney (if yu have an attrney). Yur trustee will ccasinally review yur case t make sure that yur plan is ging smthly. DEBTOR EDUCATION COURSE: This legally required, inexpensive, shrt curses supplements the credit cunseling class that yu tk prir t filing. Yu will learn varius financial and budgeting principles and receive a certificate upn cmpletin. DEBT DISCHARGE: After yu have successfully cmpleted yur repayment plan, yu and yur creditrs will receive ntice frm the curt that yur eligible debts are nw eliminated. Yu n lnger have any legal bligatin twards these debts! Sme debts may remain, such as child supprt and student lans. FRESH START: While a Chapter 13 bankruptcy can stay n yur credit reprt fr 7 years, yu can begin taking steps t rebuild yur credit and start fresh withut burdensme debts. What des it cst t file Chapter 13 bankruptcy? If yu are wrried abut the cst f filing Chapter 13, have n fear. Mst Chapter 13 csts are spread ut as a part f yur 3-5 year repayment plan. S usually yu dn t have t pay much t start the prcess. There are 3 main csts t filing Chapter 13 bankruptcy: 1. FILING FEES: This fee is standard acrss all states and ges twards paying fr administrative and filing services frm the curt and the trustee. 2. ATTORNEY FEES: Attrney fees are higher fr Chapter 13 cases than fr Chapter 7 cases due t mre extensive wrk required ver a lnger perid f time. All fees are publicly disclsed and can be mdified by the curt if they are determined t be unreasnable. These fees vary frm area t area, but the curt usually sets a benchmark fee standard f what they feel is apprpriate t charge. Attrneys that stray t far frm that fee will have their fees and case reviewed by the curt and ften times be frced t lwer their fees t be clser t the set standard. Unlike Chapter 7 attrney fees, Chapter 13 attrney fees are ften included (at least in part) as part f yur repayment plan, meaning yu

6 can spread ut yur attrney fees ver a 3-5 year perid. Yu can call yur lcal curt r ur bankruptcy attrney t learn abut Chapter 13 standard attrney fees in yur area. 3. EDUCATION FEES: Yu will need t pay fr tw classes n credit cunseling (befre filing) and debtr educatin (after filing). Bth classes teach principles abut wise financial management, debt, and budgeting. If yu are wrried abut paying fr bankruptcy, ur bankruptcy attrney can give yu advice n hw t pay fr Chapter 13 fees and expenses. Hw d bankruptcy attrneys help in the Chapter 13 prcess? Unless yu are very familiar with bankruptcy law, hiring an attrney t help yu file Chapter 13 is mst likely yur best ptin. Chapter 13 cases last ver several years and can smetimes becme cmplex. Having an attrney by yur side thrugh the prcess will help yu feel at ease that yur Chapter 13 case will be successful. Specifically, here are sme benefits f having an attrney n yur side: PROTECTION FROM CREDITOR HARASSMENT: Any creditrs that cntinue t cntact yu after yu ve filed bankruptcy are ding s illegally. Yur attrney can see t it that these creditrs are frced t cmply with the law and stp harassing yu. PEACE OF MIND: Yu dn t have t wrry abut filing alne, learning bankruptcy law, making legal mistakes, r having yur case dismissed. Yu are mre likely t have a successful bankruptcy case and have yur debts eliminated with prfessinal help. FREE INITIAL CONSULTATION: A bankruptcy attrney can help yu understand yur ptins fr debt relief and chse the best ptin t help yu get a fresh start. AVOID LEGAL MISTAKES: Individuals wh try and file alne ften make mistakes that can create legal and financial difficulties, while experienced attrneys avid making these mistakes. CONSTANT SUPPORT AND ADVICE: Yur attrney will help and advise yu thrugh the entire Chapter 13 prcess and becme yur friend and ally. Yur attrney will advise and help yu during yur required meeting with the trustee and creditrs, as well as thrugh ther Chapter 13 meetings in curt. Need mre help r infrmatin with Chapter 13? We hpe that yu have enjyed this Ebk. Fr mre help learning abut Chapter 13 bankruptcy, please: Call us fr a Free phne cnsultatin Fill ut a Free Evaluatin frm n ur website Read ur ther bankruptcy Ebks