Everything You Need to Know About Chapter 13 Attorneys and Bankruptcy

When looking into a Chapter 13 Bankruptcy, there are many options a Chapter 13 Attorney can

present a client that’s looking into filing bankruptcy. When going through hardships, bankruptcy does not always have to mean you will lose all your assets. Bankruptcy gives an opportunity to clear the debt in cases under Chapter 7 bankruptcy or establish a repayment plan which is under Chapter 13 bankruptcy.

Chapter 13 is one of the most common types of bankruptcy a person can file, and it allows for protecting your assets such as a home. Chapter 13 is an adjustment of debts allowing a person with regular income to create a payment plan to pay off creditors, typically lasting 3 to 5 years. This plan prioritizes secured debts such as a home loan, and these adjustments can mean a potential stoppage for your bank to foreclosure your home and create a new lower monthly payment to cover your cost.

Chapter 13 Attorney Eligibility

In many cases, hiring a chapter 13 attorney can be the best thing you have done for your financial situation. Any person, whether it’s an individual or business, is eligible to file bankruptcy. Businesses filing chapter 13 bankruptcy have to be non-corporation.

Many people believe that bankruptcy is a one-stop-shop to financial downfall but don’t realize that declaring chapter 13 bankruptcy can not only save their property such as their home but also wipe out some unsecured debt such as credit card obligations.

According to the United States Courts, a person cannot file a bankruptcy if prior “180 days, a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e).”

Currently, to file a chapter 13, you will need to have no more than $394,725 in unsecured debt and $1,184,200 in secured debts. In many cases, people use Chapter 13 to stop the process of the home being foreclosed by the bank and provide relief for enough income to make regular mortgage payments.

Before your chapter 13 bankruptcy attorney can send out your petition towards the courts, you will need to fill out the official paperwork for the process to go smoothly.

To be eligible you will need to provide:

  • Current tax filings
  • Calculations of all assets and liabilities
  • Sufficient disposable income for monthly payments
  • All leases and contracts in the debtor’s name
  • Current employment

When your attorney files for a chapter 13 petition, a trustee is appointed to review your case and serves as a disbursing agent to collect payments from the debtor and make an appropriate allocation to the creditors. The court will need most of your financial information and it’s your job to provide what is necessary to your chapter 13 attorney to make sure your case can move forward.

Benefits of Hiring a Chapter 13 Attorney

When looking into hiring a chapter 13 attorney, you should find someone who can not only make the process as fluid as possible but also provide a free case evaluation to see if it’s the right choice. While the advantages of filing a chapter 13 bankruptcy sound like it’s the best fit for you, there are other options that the attorney can go through with you, including the tedious law process and evaluation of your case.

Having a trusted attorney by your side will benefit you long term with updated case news, scheduled meetings, filing paperwork properly, and correcting mistakes for your case for the court. Chapter 13 attorneys will have the answers you need when it comes to knowing what’s the next thing to do to push forward your case as they have been doing this for years and have the proper experience.

Since many people file chapter 13 to secure their home, a chapter 13 attorney is very beneficial and, in most cases, stops the banks from foreclosing your home as soon as possible. Court cases have been known to be very tedious and time-consuming, but with a proper chapter 13 attorney in place that is focused on the practice, you are well protected if you do everything in a timely manner. Your chapter 13 attorney can stop overdue mortgage payments and get you back on track to having a payment plan to cover the missed payments. You’re even given the opportunity to reschedule your payments to pay at a later date which usually lowers your monthly payments.

Another benefit of a chapter 13 attorney is to protect you from harassment from creditors. When your chapter 13 bankruptcy is approved by the court, a trustee is appointed to the case to collect and distribute payments to the creditors. Chapter 13 acts like a consolidation loan to bring forward a payment plan for an individual. After your trustee for the case is appointed, you know the case has moved forward.

When Should I Declare Bankruptcy with a Chapter 13 Attorney?

The main purpose of any bankruptcy filing is to give you a fresh start without the headache of finances ruining your life. Whether it is chapter 7 or 13 bankruptcy, the main principle is to give you an opportunity for a better future. Bankruptcy can be daunting for some as it’s a heavy word in court, but there are thousands of bankruptcies done in a courtroom every day by the regular middle-class citizens.

Yes, filing for bankruptcy does impact your credit score, but the current law system gives you time to build your credit back up in each number of years, most presumably 10 years. Nothing is permanent, and in some cases, doing a chapter 13 bankruptcy at the earliest time can save you from a potential foreclosure of your property.

Making almost 30% of all bankruptcy filings in the United States, Chapter 13 bankruptcy not only forgives loans but also creates a payment plan to pay back any secured loans that have been in place to keep your assets. Look for a chapter 13 bankruptcy attorney who can help you with the steps and not only save time, but also not get dismissed in court for missing a file that was needed for your case.

Speak to an experienced chapter 13 bankruptcy attorney as soon as possible to get a free case evaluation and see your best options. Your lawyer might recommend another type of bankruptcy such as a chapter 7 bankruptcy that might fit your needs with your current situation.

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