If you are struggling under the weight of debt, are losing income due to wage garnishment, or are at the risk of home foreclosure, you know that filing for bankruptcy is the best option, but you don’t know where to start. Instead of facing these challenges alone, you need an experienced Chapter 13 bankruptcy lawyer on your side to help you navigate this complex process.
At Stiberman Law, we have over 25 years of experience and knowledge in bankruptcy law and help people just like you to overcome debt, solve their financial challenges, and move forward with confidence and security. We will fight to secure a favorable outcome in your bankruptcy case so you can experience freedom from debt.FREE CONSULTATION
Chapter 13 is often referred to as a "wage earner's bankruptcy." Instead of selling off your property and liquidating your debts, which is what occurs in Chapter 7 bankruptcy, your debts are restructured into a payment plan that allows you to keep your property and pay off the debt in a more feasible manner. Let's look more closely at the Chapter 13 bankruptcy process, so you know what to expect.
Once your Chapter 13 bankruptcy filing begins, federal law requires that all debt collection attempts are placed under an automatic stay. This means that all letters and phone calls from both secured and unsecured creditors must stop along with wage garnishment, home foreclosure, and legal proceedings.
During your case, you and your attorney must provide:
Using this information, you must submit a repayment plan based on applying all disposable income after necessary expenses to paying off creditors to the bankruptcy court. The bankruptcy judge assigned to your case will approve or deny the repayment plan.
After your payment plan is accepted, the bankruptcy trustee assigned to your case will disperse the payment to your creditors. "High-priority" debts, such as child support, student loans, and mortgage payments you're behind on will be paid first.
While most repayment plans are in place for three years in accordance with the United States bankruptcy code, they may span as long as five. You must make your monthly payments on time and in full in order to remain in good standing. When the time period is completed, most unsecured debt is discharged regardless of how much is left on the bill.
All debt, including any car and house payments you're behind on, can be included in your Chapter 13 repayment plan so you can get caught up and back in good standing with your creditors. However, bankruptcy laws have very strict guidelines regarding what debts can and can not be discharged.
Most unsecured debts can be discharged, including:
Debts that can't be discharged in Chapter 13 bankruptcy include:
From filling out forms to submitting a payment plan, filing bankruptcy is a complex legal matter. Trying to do this on your own can lead to costly mistakes, over-paying, or even defaulting on our repayment plan.
Having an experienced bankruptcy attorney on your side ensures that you have a knowledgeable advocate to assist you from the initial consultation to the completion of your case. At Stiberman Law, we will analyze your financial situation and help you come to the right conclusion, whether that's filing for Chapter 7, Chapter 13, or even choosing another form of debt consolidation.Our law firm strives to make the process as seamless and stress-free as possible, including:
We understand that Chapter 13 is complex and you probably have a lot of questions.
To help you get a better idea of whether this option is right for you, we're sharing our most frequently asked questions about bankruptcy basics.
There are two main requirements for filing for Chapter 13:
Federal bankruptcy law requires the United States courts to charge a $235 filing fee and a $75 administrative fee. If you are unable to pay this, you can file to pay in installments. If you choose to hire legal representation, bankruptcy attorneys charge different rates.
No. Chapter 13 bankruptcy is a debt relief program specifically designed to keep you from losing property. If you are behind on your mortgage, your bankruptcy plan will restructure the amount you are behind into your repayments so you can catch up. However, you must continue to make your regular mortgage payments moving forward to remain in good standing.
If you fall behind or miss payments, the trustee assigned to your case will report to the bankruptcy court and the judge can dismiss the case, requiring you to pay your debts directly to creditors or convert your case to liquidation, in which you may lose nonexempt property.
If you're ready to file for Chapter 13 bankruptcy, you need an experienced attorney on your side to help you navigate the process and achieve the best practical outcome. At Stiberman Law, our goal is to help you overcome your financial problems so you can move forward with confidence in your financial health. To schedule a free initial consultation, call our law firm at Call us: (954) 758-4324 or fill out the form below to get started.
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