Filing Chapter 13 Bankruptcy 

Does this sound like your situation?

 I have income above what I need for my most basic living expenses, BUT

• I have a lot of credit card or consumer debt.
• I am behind on my payments and getting charged late fees and over-limit fees. 
• I'm behind on my mortgage payments and my car payments.
• They've filed foreclosure papers and/or are trying to repossess my car.
• I'm being sued by a collections agency.

I just can't get caught up!

Chapter 13 bankruptcy is also called “debt reorganization” or "repayment plan" bankruptcy. Like Chapter 7 bankruptcy, it can reduce and sometimes completely erase credit card and other unsecured debt, however Chapter 13 requires you to propose and make payments into a Chapter 13 repayment plan. The repayment plan lasts for a minimum of 3 years, and a maximum of five years. Filing for Chapter 13 bankruptcy stops creditor harassment, home foreclosure, and car and property repossession while giving you breathing room to get back on your feet and pay your bills. 

Under a Chapter 13 plan, you make payments, usually monthly, to the bankruptcy trustee, an official appointed by the bankruptcy court to oversee your case. The trustee in turn pays your creditors and collects a statutory commission based on the amounts paid out under your plan. You must make every payment, and make them on time, in order to successfully complete your plan and get a discharge of your remaining debts.

Persons who have received a Chapter 7 bankruptcy discharge of debts within the past eight years cannot file again under Chapter 7 during those 8 years, but they may still qualify to file for Chapter 13 bankruptcy. 

As part of filing a bankruptcy case, you will need to attend a credit counseling class and a debtor education class (both of which can be taken on-line), co-operate with a Trustee assigned by the court, and attend two hearings. Also, if you are required to pay income tax, you must have filed income tax returns for the last 4 years.  

Bankruptcy lawyer Meredith Brasca works closely with every client, providing sound legal advice that helps clients save their assets while discharging their debts.