Bankruptcy Chapter 13
Liberty Credit Law, PC - Helping Clients Navigate Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also referred to as “Reorganization Bankruptcy”, is a type of bankruptcy that is filed for by consumers. Unlike Chapter 7 Bankruptcy, which involves the liquidation of assets, Chapter 13 Bankruptcy involves a repayment plan. When people successfully file for Bankruptcy Chapter 13, they will repay their creditors for their debts within a time span of 3 to 5 years. Additionally, they must relinquish any property that is not categorized as “non exempt”.
By filing for Chapter 13 Bankruptcy, people are able to hold onto their property and assets and use their income to repay creditors. People must reveal their total net income, pledge to repay creditors within a set time frame and not default on their payments. If they are able to do this, their debts will be erased and they will be able to move on with their lives.
In order to be eligible for Bankruptcy Chapter 13, people must be able to prove in the bankruptcy courts that they are able to meet their payment obligations and that their income is sufficient. Additionally, people who have very large amount of debt may not be eligible for Chapter 13. According to national law, a person’s debt cannot exceed $1,010,650 and a person’s unsecured debts cannot exceed more than $336,900. If a person’s debt is over these amounts, they will not be allowed to file for Chapter 13 Bankruptcy.
Working with a Chapter 13 Bankruptcy Lawyer
When a person is considering filing for Chapter 13 Bankruptcy, it is important that he/she speak with a professional bankruptcy lawyer who can review his/her income, non exempt property and debt and provide him/her with reliable counsel. By working with a skilled bankruptcy attorney, like the attorneys at Liberty Credit Law, PC, people will receive the information they need to make effective decisions.
If you would like assistance with a bankruptcy chapter 13, contact our law firm to schedule a free initial consultation today!