Chapter 13Bankruptcy

Chapter 13 bankruptcy works well when you need to bring a delinquent home loan or car loan current.  It also allows you to pay off taxes or other nondischargeable debts over time.  With a Chapter 13 bankruptcy, you can even rewrite a car loan to reduce the interest rate and the principal balance.  We can stop a foreclosure against your home or even force a car lender to return a car that was previously repossessed.

Stop Creditor Harassment

Individuals who are struggling with their debts may need to file for Chapter 13 bankruptcy to stop creditor harassment. Like Chapter 7 bankruptcy, the filing of a Chapter 13 bankruptcy petition ends harassing phone calls and letters.

Chapter 13 bankruptcy is a more complicated than Chapter 7, but it also gives you more flexibility to deal with your debts.  The typical Chapter 13 case lasts between three and five years.

Under Chapter 13 bankruptcy, people are permitted to keep their assets, which include their homes and vehicles.  A Chapter 13 will end a garnishment and stop a creditor from levying your account — even the IRS or the Franchise Tax Board.

How Does Chapter 13 Bankruptcy Work?

When a person files under Chapter 13, we will work with you to present a manageable repayment plan to the court. Repayment plan amounts are based on how long the repayment terms are, the type of debt owed and the person’s income.

The Bankruptcy Court will decide whether the plan satisfies the requirements under the Bankruptcy Code.

Along with this, the Court may require some people to repay what they owe with interest. Under Chapter 13 bankruptcy, you can decide the order in which creditors get paid and the percentage each will receive.  Upon confirmation of your plan, a bankruptcy trustee will manage the case and oversee the payments.

Every person filing for Chapter 13 bankruptcy has a meeting with the bankruptcy trustee.  (Those meetings currently take place by telephone.)  The bankruptcy trustee reviews the filing to make sure that the information is correct and consistent.  For example, you have to provide the bankruptcy trustee with copies of your pay stubs and the trustee then determines whether the income you list in your bankruptcy documents is consistent with your pay stubs.

In some cases, the bankruptcy trustee or creditors with object to the plan arranged by the indebted person and his or her attorney. When that happens, the judge assigned to the case will schedule a hearing to decide if the plan should receive approval. At Guenther Miller Law Group, we know the law and always attempt to propose plans that provide the maximum benefit to our clients.

Once you complete your plan payments, you will receive a discharge (an order from the Court that means you are no longer personally responsible for the listed debts).  At Guenther Miller Law Group, our experience will help you propose a plan that will give you a fresh start.

How is Chapter 13 Bankruptcy Different than Chapter 7 Bankruptcy

Chapter 13 allows you to restructure your debts.  You can cure and maintain payments on your house or your car.  You can pay taxes over time without additional penalties.  In exchange for this flexibility, you are required to make payments to a bankruptcy trustee for at least three years, but not more than five years.  Under Chapter 7, you do not have to make payments to a bankruptcy trustee, but you are limited in restructuring your finances.  Let Guenther Miller Law Group help you decide whether bankruptcy is the right option for you.