Bankruptcy Chapter 13

Mar 10th, 2014 | By | Category: Legal

A cheap Chapter 13 bankruptcy attorney may be able to give you with the help you need to be your finances under control. The economy has been tough on everyone. Some people have gotten into money troubles and the only solution seems to be bankruptcy. Chapter 13 bankruptcy is more of a repayment option than a clean sweep.

Chapter 13 bankruptcy is a possibility for you to adjust your debts. You can keep your property and pay off what you owe over a set period of time– usually three to five years. It is set up for those filers with regular income that have the potential to make payments.

Blacks are about twice as likely as whites to wind up in the more onerous and costly form of consumer bankruptcy as they try to dig out from their debts, a new study has found. The disparity persisted even when the researchers adjusted for income, homeownership, assets and education. The evidence suggested that lawyers were disproportionately steering blacks into a process that was not as good for them financially, in part because of biases, whether conscious or unconscious. The vast majority …

You and your Chapter 13 attorney will work together to come forward with a repayment plan. The repayment may cover all of your debts or only a portion of your debts. The repayment period cannot be longer than five years.

More Random Bankruptcy Chapter 13 Stuff

During the Chapter 13 bankruptcy repayment period creditors cannot start or continue any collection efforts.

Foreclosure proceedings can be stopped by filing for Chapter 13 bankruptcy. The monthly payments for the mortgage must still be paid on time during the Chapter 13 bankruptcy plan. The process may cure any delinquent payments on the mortgage.

Difference between Chapter 11 and Chapter 13 bankruptcies?
Any other Chapters for bankruptcies?

  • Chapter 11 is a business bankruptcy- Like what GM may have to file. Chapter 13 is a personal bankruptcy- you make payments to the trustee over a period of time- your unsecured debt is reduced to about 10% of what you owe & you pay your secured debt (house/car etc) at 100% Chapter 7 – is also a personal bankruptcy- wipes out all un-secured debt & if you want to keep your secured property you must re-affirm it & continue to pay it on time. It is very hard to qualify for a chapter 7 since they changed the guidelines a couple years ago.

  • Chapter 11 is for companies/corporation, Chapter 13 for individuals. There is also Chapter 7 for both which is total liquidation of personal assets to pay creditors.


  • Chapter 13 will require that you file a listing of the copies of tax returns, any contracts, all of your assets and liabilities, your income and monthly expenses, and also a state of your financial affairs.

    You will be called upon to get credit counseling before filing for bankruptcy. The counseling needs to be completed 180 days before filing.

    There are fees involved with filing Chapter 13 bankruptcy above those paid to your bankruptcy lawyer. You will be held responsible for a case filing and an administrative fee. These fees will need to be given to the court when the bankruptcy is filed. The court can give permission to pay the fees in installments but those installments have to pay in full no later than 180 days of the petition is filed.

    Bankruptcy fees need to be paid when filing. A Chapter 7 bankruptcy will have a negative bearing on your credit rating for 10 years. Under the new bankruptcy laws, you now have to wait 8 years to file another Chapter 7 bankruptcy if you’ve already filed for it once before.

    A Chapter 13 bankruptcy will enable you to keep your assets but your debt will be restructured so that you can start making payments again. A repayment plan will be put in place by the bankruptcy court. The foreclosure of your home can be stopped under a Chapter 13 bankruptcy. A Chapter 13 bankruptcy will stay on your financial record for 7 years.

    Finding the right Chapter 13 bankruptcy attorney can be one of the main steps to get your financial troubles under control. Finances can be one of the major causes of stress. Choosing a cheap Chapter 13 bankruptcy attorney that you will be able to trust and that will have your best interests in mind will help make this tough time just a bit easier.


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