Chapter 13 Bankruptcy
"Protecting the Home"
Eligibility
- Individual - you are an individual, not a corporation or partnership,
- Secured debt - secured debt (mortgage and car loans) does not exceed $1,081,400,
- Unsecured debt - unsecured debt does not exceed $360,475.
Purpose for Chapter 13
Stop Creditors Actions - filing a Chapter 13:
Stops lawsuits, collection activities, and harassment
Stops sheriff sales and repossessions
Stops wage attachments for student loans and the IRS
Stops utility shut-offs (and restores service)
Stops sheriff sales and repossessions
Stops wage attachments for student loans and the IRS
Stops utility shut-offs (and restores service)
Restructure Debts - obtain approval of a monthly payment plan to:
Cure mortgage defaults
Maintain monthly mortgage payment
Cure lease arrears
Eliminate charge card interest
Pay real estate and income taxes over 5 years
Reduce or eliminate charge card and other unsecured debts
Reduce or eliminate "old" income taxes
Reduce interest rates on vehicle loans
Reduce vehicle loan debt for loans more than 910 days old
Maintain monthly mortgage payment
Cure lease arrears
Eliminate charge card interest
Pay real estate and income taxes over 5 years
Reduce or eliminate charge card and other unsecured debts
Reduce or eliminate "old" income taxes
Reduce interest rates on vehicle loans
Reduce vehicle loan debt for loans more than 910 days old
Fresh Start - at the end of the chapter 13 the debtor receives a discharge (legal forgiveness) of dischargeable debt. Normally the only debt which remains after the chapter 13 ends is a home mortgage and education loans.
Fees
Chapter 13 representation is on a reasonable hourly basis. Most of the fees are paid in installments through a chapter 13 plan.