Chapter 13 bankruptcy is a consumer bankruptcy option that essentially consolidates all of your debts into one large debt, and allows you to make a single monthly payment to retire the debt. This type of bankruptcy is commonly referred to as a “Court Ordered Debt Consolidation.” A Chapter 13 bankruptcy filing will making it easier to manage your debt situation by developing a repayment plan that is determined based on your income, debt amount and living expenses.
As with some other forms of bankruptcy, Chapter 13 will halt foreclosure, vehicle repossessions, collections efforts and wage garnishment. Chapter 13, unlike Chapter 7 bankruptcy, can help you to address student loans, tax debts and similar debts. Chapter 13 bankruptcy is a relatively simple process which can give you immediate protection from creditors and provide a manageable situation to get you back onto a stable financial situation.
The 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 repayment plan will typically last between three and five years. You always have the option, without penalty, to accelerate payments and retire your debts sooner than defined in the Plan. We can help you to better understand which Chapter bankruptcy is right for you. Call us today to learn more about filing Chapter 13 bankruptcy.