A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. During this time the law forbids creditors from starting or continuing collection efforts.
Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $419,275 and secured debts are less than $1,257,850. These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor. In a Chapter 13 it is possible to modify car loans, eliminate certain liens on your home, pay off taxes over 5 years and many other benefits. Chapter 13 cases are complex and it is very difficult for a lay person to navigate all the requirements or even know about all the potential benefits. Which is why it is necessary to have an experienced attorney by your side. Fees for chapter 13 are often partially paid during the case, so do not assume that you cannot afford an attorney. Chapter 13 fees are often capped by the Bankruptcy Court. A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” (1) If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. During this time the law forbids creditors from starting or continuing collection efforts.
Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $419,275 and secured debts are less than $1,257,850. These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor. In a Chapter 13 it is possible to modify car loans, eliminate certain liens on your home, pay off taxes over 5 years and many other benefits. Chapter 13 cases are complex and it is very difficult for a lay person to navigate all the requirements or even know about all the potential benefits. Which is why it is necessary to have an experienced attorney by your side. Fees for chapter 13 are often partially paid during the case, so do not assume that you cannot afford an attorney. Chapter 13 fees are often capped by the Bankruptcy Court.
If you want to see if bankruptcy is right for you, call or email me, and we will together look at your situation and find the right solution. The call and initial consultation is free. Do not be afraid to make the call towards a new beginning.
This firm is a debt relief agency that helps people file for bankruptcy under the bankruptcy code.
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