What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy may be the right answer if you earn sufficient income but cannot meet your financial obligations. Under Chapter 13, a person struggling with debt is allowed to develop a plan to repay the debt over a fixed period of time, typically three to five years. Chapter 13 provides individuals with the ability to possibly prevent a foreclosure or repossession of a vehicle.
Our attorneys help clients compile the following information required to apply for Chapter 13 bankruptcy:
- Liabilities and assets
- Household income and expenses, including medical, food, and housing expenses
- A list of all creditors, the type of debt, and the amounts owed
- A financial affairs statement
- Proof of attendance at credit counseling
Once a debtor files a petition under Chapter 13, creditors are prohibited from contacting the debtor to collect as creditors must now file a Proof of Claim if they want to be paid through the debtor’s plan. Creditors can also seek relief from stay during the pendency of the Chapter 13 if the debtors fail to make their plan payments and sale of property is the only remedy.
Whether you are an individual filing for Chapter 13 bankruptcy or a creditor who is facing such an action, you have significant rights under the bankruptcy laws. At Hemb Law Group, we take the time necessary to advise you of your legal options, dispel any bankruptcy myths you may have heard, and offer practical solutions to meet your specific needs, every step of the way.
