Chapter 13 Debt Repayment
Chapter 13 bankruptcy gives the individual the ability to repay their debt through an approved payment plan. In many cases, the Chapter 13 debtor can become debt free in three to five years. Individuals facing home foreclosure or vehicle repossession are often able to keep their assets in a Chapter 13 case. Contact us online or call 815-788-9511 for a free consultation with our Chapter 13 bankruptcy attorney.
Benefits of Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy, a debtor can:
- put an immediate stop to all collection actions
- obtain through the court a debt repayment plan
- get a chance to catch-up on delinquent mortgage or car loans
- repay delinquent taxes
- pay-off unsecured debt
The Chapter 13 Bankruptcy Process
The Chapter 13 case involves the following steps:
- We start with a free Chapter 13 case evaluation to determine how to best structure the proposed repayment plan
- We then review all of the relevant financial records and documents in order to obtain the necessary information to prepare the case
- We arrange for the individual to take an online credit counseling class
- We run a credit report that draws from all three credit bureaus
- We file the bankruptcy court the petition, schedules, and proposed repayment plan
- We make sure that all creditors are notified of the bankruptcy case
- The client attends a brief hearing conducted by the case trustee
- If an objection is filed, we work diligently to resolve the objection
- If an objection is not resolved by the parties, the court will rule on the objection
- If no objections remain at the time of the court confirmation hearing, the bankruptcy court will enter an order confirming the plan
The Individual Must Have Regular Income
In order to obtain from the court approval of the Chapter 13 plan, the individual must have sufficient regular income to adequately fund the Chapter 13 payment plan.
Most types of regular income will be accepted to fund the plan, including:
- income from employment
- regular business income
- court-ordered support
- benefits from unemployment
- workers compensation payments
- Social Security Administration benefits
- VA benefits
- benefits for a disability
If you would like to receive a free evaluation, call 815-788-9511 to speak with a Chapter 13 Schaumburg Bankruptcy Attorney.