Chapter 13 Bankruptcy

Sometimes called a “repayment plan”, Chapter 13 can stop the bank from foreclosing on your home, and get you YEARS to catch up on past due mortgage payments, while protecting your home! Chapter 13 also stops your car from being repossessed, and may even be able to lower your car payment while you KEEP YOUR CAR! There are many types of Chapter 13 plans, and our experienced staff will guide you and be able to tell you whether you qualify for a percentage plan where you ONLY pay a small percentage of your debt, while keeping all of your assets, including your house and your car…

A Chapter 13 will help you get your license reinstated right away, if it has been suspended for parking tickets! Our staff will give you the exact steps necessary to get your license reinstated after you file your Chapter 13.

We have been helping people keep their homes and cars for years with the Chapter 13, and we can help you too.

Chapter 13 is ideal for people who have a problem with their mortgage, need to stop a foreclosure, need time to catch up on mortgage arrears, have assets that they would lose if filing a Chapter 7, are behind on car payments, have many secured obligations, are not eligible to file Chapter 7, or just want to pay their obligations but in reduced payments.

Filing a Chapter 13 will stop all creditor harassment, foreclosures, wage assignments or wage deduction orders, lawsuits, repossession of personal property and internal revenue levies. Friends and relatives who may have co-signed on a debt may also be protected.

To be eligible to file a Chapter 13, one must have income “sufficiently stable and regular” to make payments under a plan which must be approved by the court. Income can be derived from sources other than employment, and people receiving social security, disability, unemployment, veterans or retirement benefits and rental income are also eligible. Stock brokers and commodities brokers, as well as corporations are not eligible for relief under Chapter 13.

Individuals who are self employed or sole proprietorships are eligible if unsecured debts are less than $307,675 and secured debts less than $922,975. The dollar figures increase every three years by 10%.

The bankruptcy court must approve and confirm a Chapter 13 plan. To gain approval, a plan must fulfill certain requirements such as:

• The plan must be proposed in good faith
• The amount unsecured creditors are to receive cannot be less than would be paid had a Chapter 7 been filed.
• The plan must propose to pay all disposable income not reasonably necessary for the debtor’s maintenance and support

Consent to the plan by unsecured creditors is not necessary and consent of secured creditors is also not necessary if the plan provides to pay the balance due or return the creditors security. Under both Chapter 7 and Chapter 13, judicial liens on certain property can be set aside if the lien interferes with state exemptions.