Chapter 13 Bankruptcy Attorney By Me

Individuals who do not qualify for Chapter 7 bankruptcy can file for Chapter 13 bankruptcy. In fact, many individuals who do qualify for Chapter 7 choose to file for Chapter 13 because it is a more productive choice for them, given their circumstances. Chapter 13 bankruptcy does not require the liquidation of the filer’s assets like Chapter 7 does. Rather, it requires the filer and his or her bankruptcy trustee to develop a repayment plan for the debt. If the court approves the plan, the filer spends the next three to five years making payments by keeping a careful budget.

Qualifying for Chapter 13 Bankruptcy

Not all individuals qualify for Chapter 13 bankruptcy. If you have more than $1,184,200 in secured debt, which is debt backed by collateral such as your home or your vehicle, you cannot file for Chapter 13 bankruptcy. If you have more than $394,725 in unsecured debt, debt that is not backed by collateral, you also cannot file for Chapter 13 bankruptcy. If you are facing either or both of these debt amounts, consider filing for Chapter 7 bankruptcy instead.

You also must submit the past four years’ worth of your federal and state income tax returns to the court in order to qualify for Chapter 13 bankruptcy. If you do not do this, your case will be dismissed.

What Can I Expect from Chapter 13 Bankruptcy?

Chapter 13 bankruptcy cases have a $310 filing fee. You must pay this fee and complete a credit counseling course to move forward with your Chapter 13 case. You will be assigned a bankruptcy trustee, who will oversee your progress through each step of the bankruptcy process and help you develop and maintain your repayment plan.

Do not expect your repayment plan to automatically be accepted. Your creditors can file objections to your repayment plan, requiring you to submit a revised plan. This can take time and require you to make repeated court appearances with your tax documents and pay stubs.

Your completed Chapter 13 bankruptcy will remain on your credit report for seven years following your discharge. Filing for Chapter 13 bankruptcy will hurt your credit score, so be sure to start rebuilding your credit as soon as you can after you file your case.

Work with an Experienced Merrillville Bankruptcy Attorney

If you are struggling with an intense level of personal debt, consider filing for bankruptcy to have it partially or completely discharged. Chapter 13 bankruptcy is available to individuals who do not qualify for Chapter 7 bankruptcy. If you are not sure if you qualify for Chapter 7 bankruptcy or if you know you do not and you want to move forward with your Chapter 13 case, speak with an experienced bankruptcy attorney. Contact Whitten & Whitten today to set up your free consultation with us.