Chapter 13 Bankruptcy

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Las Vegas Chapter 13 Attorney

Chapter 13 Bankruptcy Explained

Chapter 13 bankruptcy is an option for individuals who have disposable income, but simply cannot afford to meet their monthly obligations. Chapter 13 works as a repayment plan that is structured over thirty-six (36) or sixty (60) months based on the debtor’s disposable income. The basic process for Chapter 7 applies for Chapter 13 bankruptcy. You fill out a bankruptcy questionnaire to provide the necessary information to draft your bankruptcy forms and petitions. You must take a credit counseling course before filing the petition. The information from your credit report will be integrated into your forms and schedules to ensure that the documents are as inclusive as possible. Within two weeks of filing the Petition, you will provide the Trustee assigned to your case your bank statements from the last six (6) months, your pay stubs from the last six (6) months, your tax returns for the last four (4) years, you will fill out a Chapter 13 Bankruptcy Questionnaire for the Trustee. Within thirty (30) days of filing, you will make your first plan payment. Your 341 meeting will be held approximately thirty (30) days after the filing of your petition.

How Different From Chapter 7 Is It?

There are many differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7 is usually completed in approximately 90 days. The trustee seizes any non-exempt assets and distributes funds to the creditors who have filed claims. Chapter 13, on the other hand, requires that a Chapter 13 plan be drafted and filed with your forms and schedules, and later confirmed by the Court. Next, you make the payments under the plan to the Trustee, who then pays the creditors based on the plan until either you make the number of payments agreed to under the plan or until the creditors who have filed a proof of claim have been paid in full, whichever comes first. This means if your creditors are provided notice and do not file a proof of claim, you will not have to pay them under your Plan, sometimes allowing you to complete your bankruptcy sooner. In Chapter 13 cases, the Trustee is also entitled to your tax refunds while you are in bankruptcy.

Is It Right For You?

Chapter 13 offers powerful tools for creditors that are behind on payments to secured creditors, but wish to keep their assets (house or cars). Under Chapter 13 you can structure the deficiency amounts to be brought current throughout the length of the repayment, making it possible to keep your house or car. There is also an option under Chapter 13 to have a mediation with the mortgage company to consider alternative options other than simply bringing the mortgage current and continuing to make the same payments.

In Chapter 13 bankruptcy, at the end of your repayment term, the qualifying debts that have not been paid off will be discharged. This is ideal for those with high amounts of unsecured nonpriority debts (such as credit cards and medical bills), but do not qualify for Chapter 7 bankruptcy.

Chapter 13 is not available for business entity debtors.

Time To Discuss Your Options?

At Lizada Law Firm, Ltd., you will have a free Bankruptcy with attorney Angela J. Lizada, Esq. and Attorney Lizada will be present with you at your 341 meeting. We will discuss the bankruptcy process based on your specific facts and explain the requirements, procedures, and what to expect at your 341 meeting with the Trustee assigned to your case. At Lizada Law Firm, we focus on you as an individual and your reasons for choosing bankruptcy to ensure that filing banruptcy is the right option for you and your financial situation.

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