Filing Chapter 13 Bankruptcy

Chapter 13 Bankruptcy offers a comprehensive reorganization of debts for anyone with regular income. This chapter is designed for a debtor that has fallen behind on their secured debts (i.e., home mortgages or auto loan). The objective is to allow the debtor to resume regular monthly payments while paying off the arrearages over a set time period. The maximum time period allowed by the U.S. Bankruptcy Code to repay creditors is five years. A Chapter 13 is managed by a court appointed trustee.

Chapter 13 bankruptcy is a bankruptcy option that combines all debts into a single amount, which enables the debtor to make a single monthly payment to pay off the amount. The common term for this type of bankruptcy is a “Court Ordered Debt Consolidation”. This repayment plan is manageable because it is based on your particular income, living expenses, and debt amount to be repaid.

The Chapter 13 bankruptcy process involves several steps which will include at least one in-person appearance in Federal bankruptcy court. This appearance is not in a traditional courtroom setting and is more of a formal meeting than a courtroom situation.

The Court will appoint a Trustee, who is an attorney, to handle your case. In this meeting your Trustee will review the facts of your case and confirm that the submitted repayment plan is workable. From there your case will move forward (on a different day) for confirmation by a bankruptcy judge. We will provide legal representation for you at every step of the process.

Upon confirmation of your repayment plan you will begin making payments to the Trustee or possibly have the payment automatically deducted from your paycheck. A Chapter 13 “Court Ordered Debt Consolidation” typically runs for a 3-5 year period.

To learn more about filing for Chapter 13 bankruptcy protection simply give us a call to speak with a bankruptcy lawyer.