Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is for those who are struggling to manage their debt and need help in restructuring their payments. When filing a Chapter 13, our office will use your income and expenses to determine a feasible repayment plan that usually includes better repayment terms such as 0% interest. This means that you will repay some or all your creditors over a period of 36-60 months. All your payments will be combined into one and the only person that you will be responsible to is your bankruptcy trustee. This means that your creditors cannot foreclose on your house, garnish your wages, or contact you to collect debt.

Each person and situation are unique, and we will not know if you qualify for a Chapter 13 until we meet you with you for an initial consultation. A Chapter 13 is for those who are above a certain median income or for those who pass a means test that determines whether you can be expected to pay back your debts with any disposable income. If you are self-employed or operating an unincorporated business, you could still be eligible for a Chapter 13.

If you have already filed and received a discharge from a Chapter 7, 11, or 12, then you can file a Chapter 13 after 4 years. If you have already filed and received a discharge from a Chapter 13 then you can file another Chapter 13 after 2 years. Even if you don’t believe you are eligible to file another bankruptcy, you still may want to visit with Marks Law Firm to discuss your options. We work in the areas of collection defense, consumer protection, and foreclosure defense. Our consultations are free and we can help.

There are multiple financial benefits to a Chapter 13, these include but are not limited to:

• Restructures your debt to make it more financially feasible.
• Protects your home and assets from foreclosure or repossession.
• Stops negative reporting on your credit report.
• Reallocated debt to a single trustee instead of many creditors.
• Stops creditors from:
  • Calling you, your friends, and your family to collect debt
  • Garnishing your wages
  • Pursuing judgements against you
  • Attempting to foreclose
  • Repossessing cars or property

The process of a Chapter 13 can take anywhere from 3 to 5 years to complete after the initial filing of your bankruptcy petition. How quickly you can file your bankruptcy after your initial appointment with us is entirely up to you and your individual situation. The steps to filing a bankruptcy and receiving a discharge are as follows:

1. Schedule an initial appointment with one of the attorneys at our office.
2. Sit down with our experienced attorneys to determine the right course of action for you.
3. Gather necessary documentation and information for the bankruptcy filing.
4. Schedule your bankruptcy signing date.
5. Come into our office to go over and sign the paperwork to file your bankruptcy petition.
6. Roughly 30 days later – Meeting of Creditors or 341 Hearing where the judge will ask you simple questions to approve your bankruptcy petition.
7. For 3-5 years – You will make monthly payments to the trustee to work on paying off your creditors as part of a payment plan.
8. Once the plan is complete – You will receive your bankruptcy discharge and any outstanding non-priority debt will be wiped away and your fresh start begins!