Chapter 13 Lawyer Near Me
Sometimes life doesn’t go as planned. In some cases, it can leave you with mounting debt that you aren’t sure you will ever be able to get out from under. You might feel overwhelmed and hopeless. However, there is hope, and we can help. Under federal bankruptcy laws, the United States government provides a way for people just like you to have their debts fully or partially wiped away or to make manageable payments for them. If you are searching for a trustworthy Chapter 13 lawyer near you, look no further than the Law Office of Kevin M. Schmidt.
What is Chapter 13 Bankruptcy?
There are different chapters of bankruptcy available to you. A chapter 13 bankruptcy is also commonly known as a wage-earners bankruptcy. It is designed for people who can make regular and reasonable payments towards their debt. The bankruptcy trustee will calculate how much of your debts you will need to pay back in this plan. That amount will be divided into monthly payments over three to five years. During this time, creditors aren’t permitted by law to start or continue collection efforts. Once you finish making all the payments, you will receive a discharge of your debts.
Is a Chapter 13 Bankruptcy Right for You?
As long as an individual’s unsecured debts total less than $394,725 and their secured debts are under $1,184,200, they generally qualify to file chapter 13. Keep in mind that these figures change periodically based on the consumer price index.
You must also meet the following requirements for a chapter 13 bankruptcy:
- Have regular income
- Be current on tax filings
- Not have filed for Chapter 13 bankruptcy in the past two years
- Not have filed Chapter 7 bankruptcy in the past four years
- Not have filed a bankruptcy petition (Chapter 7 or 13) in the past 180 days that was dismissed for specific reasons, such as not appearing in court or not complying with court orders
The best way to determine if you qualify is to contact a knowledgeable Chapter 13 attorney near you. Your attorney can assess your situation and help you decide what steps to take next.
Benefits of Filing Chapter 13 Bankruptcy
Chapter 13 has many potential benefits over liquidation under chapter 7. The most significant benefit is that it gives homeowners a chance to save their homes from foreclosure. In a Chapter 13, homeowners can stop foreclosure proceedings and may cure their mortgage arrears over time within the repayment plan. However, they are still required to make all mortgage payments that are due during the chapter 13 plan on time as well.
Another benefit of chapter 13 is that it lets the petitioner reschedule secured debts (excluding a mortgage for their primary residence) and stretch them over the duration of the chapter 13 plan. By doing this, they might lower payments.
Chapter 13 includes a special provision protecting third parties who are liable along with the bankruptcy debtor on consumer debts. Co-signers might have protection under this provision.
Finally, direct contact between the bankruptcy filer and their creditors isn’t permitted while they have Chapter 13 protection. Even still, chapter 13 is similar in many ways to a consolidation loan; the debtor makes the plan payments to their chapter 13 trustee, who then makes payments to the appropriate creditors.
Are You Looking for a Reputable Chapter 13 Lawyer Near You?
If you are looking for a reputable Chapter 13 attorney near you who is knowledgeable and trustworthy, you have come to the right place. Contact us today to learn more about our bankruptcy services and to schedule your consultation.
Schedule A Free Consultation
At the Law Office of Kevin M. Schmidt, P.C., we offer a free consultation during which we will examine the facts of your case and advise you on how best to proceed