Chapter 13 Bankruptcy
Chapter 13 Bankruptcy
At the Law Office of Aramis Hernandez, we recognize that every individual in need of debt relief services is unique. Our attorneys can help you find the best bankruptcy options for you, and start you on the path to financial recovery today.
If you feel that you are in need of legal representation for your bankruptcy, contact our Chapter 13 and Chapter 7 bankruptcy lawyers for experienced and confident legal advice. We will work hand in hand with you to choose only the options that best fit your needs. After an initial consultation, we can begin working to protect your best interests.
What is Chapter 13?
Chapter 13 bankruptcy offers debt relief to individuals who do not qualify for Chapter 7 bankruptcy or individuals interested in repaying their debts, but who do not want to lose assets they have acquired, including business interests, homes, cars, etc.
While debtors are allowed to keep all of their property, the court approves a new interest-free plan for repayment. A written plan is created, giving details of all the transactions that will occur, and the duration of the same. The repayment must begin within thirty to forty-five days after the case has started.
Unlike Chapter 7, Chapter 13 bankruptcy doesn't require the liquidation of a person's assets. Instead, it allows an individual to restructure their debt and to submit a payment plan, consolidating most of their debts, upon approval by the bankruptcy court. According to the terms of the plan, a debtor’s disposable income (any income after reasonable expenses) goes to the creditors for at least 36 months after the beginning of the payment period.
There are a number of advantages to Chapter 13 bankruptcy. The one advantage of Chapter 13 over Chapter 7 bankruptcy is the full discharge option, which is not applicable under Chapter 7 filings. But the process can be complicated. The advice of an experienced, knowledgeable attorney can help you determine what kind of repayment plan will work for you and protect your best interests throughout the process.
For all intents and purposes, the filing for Chapter 13 bankruptcy entails the following:
- -Determine whether Chapter 13 is the best solution, or whether the case can be tackled in some other way.
- -Prepare a budget.
- -Determine and implement methods of dealing with secured creditors.
- -Devise a Chapter 13 plan and fill out the necessary forms.
- -Pay the filing fee and complete the process of filing the forms and pleadings.
- -Attend required meetings. This may include meetings with creditors, court hearings, etc.
- -Obtain a discharge once the payments have all been made and the plan terminated.
There's a lot that lies between the lines.You can rest assured that our attorneys will take care of all of these things. After an initial consultation, we can begin working to protect your best interests.