The experienced and reliable Chapter 13 bankruptcy attorneys at Weintraub & Selth, APC are here to answers all of your questions about bankruptcy law, including possible alternatives that might suit your situation. Many of our clients reach out to us believing that bankruptcy is their only option. Often, because we have decades of experience, we are able to help many of them avoid bankruptcy. However, in some cases, Chapter 13 bankruptcy is the best option because it can eliminate or reduce many types of debt including:
- Car loans
- Credit card debt
- Medical bills
- Tax debt
Who Should File for Chapter 13?
Chapter 13 bankruptcy is the second most popular form of personal bankruptcy, second only to Chapter 7. If you are being pestered by debt collectors, have a steady income and assets, and the equity in your home is not protected by filing Chapter 7 bankruptcy, then Chapter 13 bankruptcy might be the best option.
Chapter 13 generally ideal for:
- Individuals who have fallen behind on mortgage payments
- Individuals who need time to repay taxes
- People who want to protect their homes from foreclosure
- Consumers who are being crushed beneath the burden of credit card debt
We can review your individual circumstance to help you determine whether or not Chapter 13 is the right option to help get rid of your debts. Bankruptcy is a big decision, so it's important that you review the pros and cons with a qualified attorney.
What Determines My Chapter 13 Repayment Plan?
While Chapter 7 bankruptcy requires liquidation of some of your assets for repayment of your debt, Chapter 13 bankruptcy allows you to reorganize your debt and repay a small part before you receive a discharge. This typically is achieved after approximately three to five years of adhering to an approved repayment plan.
You repayment plan is determined by several factors:
- Monthly payments: The monthly amount you must repay is determined in part by how much disposable income you have. Disposable income is typically defined as money you have left after paying your necessary living expenses.
- Length of plan: If your current monthly income is less than your state's median for your household, then your plan will last 3 years. If that amount is more than your state's median for your household, the plan will be 5 years.
- Total debts: Your plan must account for all debts, including priority debts, unsecured debts, and secured debts for property that you will want to keep (such as a home or car).
After creating a strategic plan to help you realistically repay your debt, we will structure the debts that will be included in the repayment plan as well as the percentage of them that you will repay. The more of your debt we can discharge, the lower the percentage of debt you will have to repay. Once you complete the repayment plan, your remaining eligible debts will be discharged. In Chapter 13 bankruptcy, this may include unsecured debts such as medical bills and credit card debt.
Affordable Debt Solutions for You
Our Chapter 13 bankruptcy attorneys are committed to delivering aggressive and creative debt solutions at affordable fees. We have developed an innovative fee structure that allows us to bundle legal services for a flat or monthly fee. This enables our clients to cap their costs for legal services or plan their monthly expense for filing Chapter 13 bankruptcy. Call us now to determine how we can help you.
To learn more about filing for Chapter 13 bankruptcy, please give us a call today at (310) 220-4147.