What is a Chapter 13 Bankruptcy Plan?
Chapter 13 bankruptcy is known as the”Wage Earner Bankruptcy” is intended for those with higher-paying jobs and/or are behind on their mortgage. By definition, you will pay back at least some of your debt in a Chapter 13 bankruptcy plan
Reasons People File for Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is not the solution for most people’s situation. If you find that your situation checks off a majority of these key commonalities, then it may be right for you:
If your chapter 13 bankruptcy plan is approved by the Court, you will make a predictable payment each month for three to five years, and then whatever is still due at that point will be discharged or extinguished.
Why Should You File for Chapter 13 Bankruptcy?
We know you’re nervous, you’re concerned. Please be assured you are not alone. Many people (and probably some you know) have used bankruptcy to stop the downward spiral and prevent loss of their home.
Maybe you lost your job, are separated from a spouse, or were hit with unexpected medical bills, and fell behind with mortgage payments and a home needs to be saved for you or your children. Or, you need to protect a co-debtor.
Chapter 13 debt consolidation and repayment programs
Chapter 13 is a three to five-year debt consolidation and repayment program for homeowners primarily, to allow for those with sufficient income or assets to get caught up. Each case is unique and requires the skill of attorneys like Suzann Beckett and her associates to design a Chapter 13 plan that can identify what debt can be completely discharged and how much can be paid monthly on non-dischargeable debt, such as:
- student loans
- taxes
- child support
Additionally, we are experienced in:
- preventing home foreclosure
- prolonging home possession
- reducing principal or an interest rate on auto loans or other secured loans
How Can You Qualify for Chapter 13 Bankruptcy?
Most people can file Chapter 13. Either you file by choice because it offers benefits that a Chapter 7 does not – or you file by necessity because you don’t qualify for a Chapter 7 (ex., your income is too high).
However, if you owe more than $394,725 in unsecured debt (credit cards, loans, etc) or $1,184,200 in secured debt (mortgages, liens), you may not be eligible for a Chapter 13. You may need to explore either Chapter 7 or Chapter 11 instead.
Note: These debt limits may increase due to Coronavirus legislation