Overview of Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows a person or couple to repay all or a portion of their debt under the supervision of the bankruptcy court. A good way to think of chapter 13 is as court ordered consumer credit counseling. If you commit to paying as much as you can (usually for three or five years) on your unsecured debts such as credit cards, then the court orders that the rest of your debt is wiped out.
A person who files for Chapter 13 relief must submit a plan to the court for repayment of debts. There are many requirements for this plan, and a person should seek legal help if they want to file for Chapter 13 relief. Creditors are prohibited from collecting on debts by the filing of a Chapter 13 case, and in many cases they are forced to accept pennies on the dollar in the debtor’s plan.
There are many differences between what is possible in Chapter 13 cases and what is possible in Chapter 7 cases. Usually persons choose to file Chapter 13 cases in order to protect property that could not be kept in a chapter 7, or they choose Chapter 13 because it provides more opportunity to rescue a home that is in serious default.
Preparation is the key to success in any type of legal matter. We have the bankruptcy experience necessary to prepare your case quickly and get it done right. We also have the expertise to determine whether chapter 13 or 7 is right for you, and we will suggest alternate bankruptcy and non-bankruptcy avenues where appropriate.