Chapter 13 Bankruptcy is often called many things because Chapter 13 can do many things. Creditors often call Chapter 13 a disguised Chapter 7 because Chapter 13 typically eliminates unsecured debts. Yet, in Chapter 13 you can protect yourself from future unsecured debts such as medical bills during your plan. If your plan becomes unfeasible, dismissal usually is the best option. One may be eligible to convert to Chapter 7 eliminating post filing debt. In Chapter 13 a creditor may get paid by filing claim for pre-petition or post-petition debts as the Debtor's Attorney may also file a claim for the creditor eliminating them when the plan is complete or the case converted to Chapter 7.
With the Bankruptcy 2005 Amendments, the Courts have yet to interpret if Debtor's attorney may file a post petition claim and eliminate that debt. Property received during Chapter 13. Prior to the law change most clients filed Chapter 7, but due to the increased upfront cost, most of our clients file Chapter 13 to get protection, pay their attorney fees, lower the interest on their car loan while repaying in on a non-recourse basis, in addition to repaying taxes without interest. Chapter 13 can do many things!
Bankruptcy, Chapter 13 like Chapter 7 requires one to balance the monthly budget without borrowing. While most households cannot continue to borrow, like Congress, it becomes a necessity! Tough choices have to be made, but the road to financial recovery is better than financial treadmill.
Chapter 13 allows you to reorganize and repay debts according to priority, typically, administrative, secured debts, child support, taxes and other priorities ahead of unsecured debts. Once your petition is filed, a Court appointed trustee reviews your petition, oversees your plan, receives your payments, and disburses payments accordingly.
Chapter 13 typically is more beneficial than debt settlement because you are not taxed on the settled part. Chapter 13 settles all matters and is based on your financial ability versus the amount owed as in debt counseling or management. Chapter 13 is reported to have a better effective on your credit score than Chapter 7, debt settlement or credit counseling because credit scores are primarily based on your available credit and payment history. During their initial interview, most potential clients find their project credit scores go up when we run their credit report.
Historically, a primary reason for filing for Chapter 13 bankruptcy protection can be to "save" the home and catch up the mortgage payments. Because you filed Bankruptcy, you are eligible for priority modification consideration that you were not previously eligible for!
While apparently simple, so is operating on your kidney to a medical doctor as bankruptcy laws are to a bankruptcy lawyer.
While routinely done, bankruptcy is extensive, complex, with everyone's case is uniquely different, it takes expertise and experience to make kidney operations and bankruptcy routine. I am here to make this situation happen for you. Simply, routine! For fifteen years, this is what we do! Please email or call our office to set up an appointment with Attorney Neal Bisges to discuss your situation and have your options explained to you before you make a life changing decision. It is $400 to to get in the door, but isn't your time and our time when making a life changing decision worth it?
Good general information regarding Chapter 13 Bankruptcy is available from the US Courts Federal Judiciary at: Chapter 13 - Bankruptcy Basics
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The information provided in The Bisges Law Firm, P.C. web page is offered for informational purposes only, and it does not constitute legal advice. The Bisges Law Firm, P.C. does not have an attorney-client relationship with you based upon your visit to this web page. If you have a specific legal question, you should contact an attorney. The Bisges Law Firm is a debt relief agency.