CHAPTER 13

A Chapter 13 bankruptcy results in a payment plan that allows you to repay some of your debt over 3 to 5 years with minimal interest. For example, you could make up missed mortgage or car payments to get current without penalties. Most importantly, the Chapter 13 bankruptcy allows debtors to retain their property. Under the right conditions, certain debts, like second mortgages and liens on real property may be stripped away.

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HOW IT WORKS

  1. Consultation

    We offer a free consultation with one of our experienced attorneys. There, we will discuss your situation and assess the best options for you and your case.
  2. Document Preparation

    At EH Law Group, you can trust that only an attorney will prepare your petition for filing.
  3. Credit Counseling Class

    As required by the Bankruptcy Code, we will show you where to complete your online credit counseling class and obtain the required certificate.
  4. Petition Filing

    Once the petition has been drafted, we will file it with the bankruptcy court. You will receive a case number and a hearing date for your 341 hearing.
  5. 341 Hearing of the Creditors

    This is a hearing at the U.S Trustees office. The trustee and sometimes the creditors will ask questions about your petition and your case. You need to take a second debtor education class.
  6. Confirmation Hearing

    You're done!

FREQUENTLY ASKED QUESTIONS

Do not let the term "liquidation" scare you because the law has many exceptions in place which allows debtors to keep their personal belongings and in most cases their home and cars (these are called "exemptions"). Contact us for an appointment to discuss your situation. Learn more about Chapter 13 Bankruptcy below:

    • Will I qualify for a Chapter 13 bankruptcy?

      Many times a debtor who has too much income or assets will not be able to file a Chapter 7 bankruptcy but can file a Chapter 13. In a Chapter 13, you will repay a certain percentage of your debt over a 5 year period. The bankruptcy law has a "means test" to calculate how much a debtor needs to repay. A seasoned attorney will be able to help you figure out a proper payment plan, taking into consideration your monthly living expenses and income. This can result in the debtor paying back pennies on the dollar to the unsecured creditors.

      There are a few restrictions to qualify for Chapter 13 bankruptcy: 1) You do not qualify for Chapter 13 bankruptcy if your secured debts exceed $1,149,525. Home loans and car loans are the most common examples of secured debts. 2) Your unsecured debts cannot exceed $383,175. Most debts are unsecured, including credit card debts, medical and legal bills, back utility bills, and department store charges.

      If you would like more information on the means test and whether or not you qualify for a Chapter 13 bankruptcy, please give us a call or fill out our submission sheet online and we will discuss these issues with you.

    • Now that I have filed, how am I protected?

      The law protects you from creditors after the bankruptcy is filed. The creditor may not call you, your workplace, your friends or family to ask for the money. This protection is called the "automatic stay." The automatic stay is so powerful that lawsuits, wage garnishments, bank levies or repossessions all must stop immediately. Until you file, our firm will filter calls by your creditors so you can complete the process in peace.

    • Now that I have filed, will I have to go to Court?

      Only a few debtors ever have to go to "Court" for their bankruptcy. Every debtor must attend a 341 meeting of creditors. The meeting is in court but is run by the Chapter 13 Trustee. The Trustee will review your case with you and ask questions to make sure you did not miss anything. We will be with you every step of the way in the meeting.

    • How long is the repayment plan?

      Generally speaking, a Chapter 13 bankruptcy will be either 3 years or 5 years long. The Bankruptcy Court wants you to make an orderly repayment of your debts that won’t put you back in the hole.

    • Can a Chapter 13 help me save my home?

      The Chapter 13 is a powerful tool to handle your mortgage. While your home loan cannot be changed, the bankruptcy will allow you to make up missed mortgage payments, property taxes, or even HOA payments over the 5 year repayment period. During that time, your lender cannot start or continue foreclosure processes.

      If the property is completely underwater, second mortgages can be "stripped" away which means removed from the property. This can mean the difference between staying in your home and renting.

      If you would like more information on how a Chapter 13 can help you save your home, please give us a call or fill out our submission sheet online and we will discuss these issues with you.

    • I got my discharge but the creditor is still calling, help!

      Your creditor is breaking the law. Creditors are not allowed to continue to contact you or collect any money except under very specific conditions. If creditors continue to contact you, each incident is an egregious violation of the law. Our office can help you take the law and fight back. Depending on your case, we can start a lawsuit against the creditor and make them pay for these violations.

      If you would like more information on post discharge collection violations, please give us a call or fill out our submission sheet online and we will discuss these issues with you.

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