Have you fallen behind in your bills, but you have a regular income? Chapter 13 bankruptcy will help you to get back on your feet. Unlike Chapter 7, a Chapter 13 does not require a means test to file. If you have a predictable source of income, you can repay your debts with assistance from the court.
Whether you had an illness, unexpected expenses, or a job loss, Chapter 13 is the answer for you. You can get back on track with your creditors, and you can keep your property too. Bankruptcy can stop a repossession or foreclosure, and you can catch up on any payments you have missed. The repayment plan is three to five years in length, depending on the amount of disposable income you have.
Once you file a Chapter 13, you are under the court’s protection. No further collection activity can occur, and any wage garnishment ceases. Creditors are not allowed to call you, and they must deal with the lawyer regarding their future payments. The payment plan is withdrawn from your paycheck, and the court disperses it. The court pays your monthly obligations from your funds. Just like in Chapter 7, you will have a trustee overseeing your case.
There are many perks to a Chapter 13 that are not common knowledge. If you have a car for more than two years, you can pay fair market value for that vehicle, and any upside down costs are eliminated. Contact us today to see how we can help you file your case and get out of debt!