Chapter 13 Is Very Difficult Without a Bankruptcy Attorney
If you are ready to start a new chapter in your financial life, call a bankruptcy attorney. We can meet with you and create a plan for how you can get out from under your debt and start over. Very often, a Chapter 13 is the best way to proceed because it allows you to reorganize your debts and pay back a portion of them, without losing your assets. If you are interested in proceeding, here are some of the basic steps we will take with you –
#1 Review your information.
Your assets, debt and monthly income need to all be reviewed so that a comprehensive budget can be created. The goal is to determine what you have left over after paying your bills and your living expenses. This will show us how much money you have to direct towards your debt payments. In order to file a Chapter 13, you have to direct money towards paying on debt every month. If you cannot, you are better off filing for a Chapter 7 liquidation bankruptcy.
#2 Create a plan.
As a bankruptcy attorney, we can help you to identify how much money you have to direct towards debts and then make a plan for how much you will pay and for how long you will pay it. Generally, your creditors will not get 100 percent of what you owe but they will get a portion of it, which is more than they are likely to get with a Chapter 7.
#3 File with the court.
We can file your bankruptcy papers with the court system on your behalf. At that point, a trustee will be assigned to your case. The trustee has an important job to do – protect the estate. In this situation, the estate is your personal assets. Their objective is to make those assets stretch as much as possible to pay off creditors.
#4 Notices are mailed.
All of your creditors will receive a notice saying that you have filed for bankruptcy. At that point, there will be a stay, meaning that they cannot try to collect on what you owe. If you are behind on your mortgage, this can give you time to work things out with your lender in or out of court.
#5 Creditors can object.
Anyone that you owe money to has the right and opportunity to object you filing for bankruptcy or object to the amount that you are proposing to pay them. Ultimately, it will be up to the court to approve or deny their requests and your plan.
#6 Confirmation hearing.
There will be a hearing to confirm the details of your plan. This is the first step towards finalizing it. Once done, you will be given a set amount to pay on a monthly basis, which will begin right away. As long as you keep your end of the bargain and make those payments for the next several years, any remaining debts will be eliminated at the end of the process.
To learn more about your options, call and schedule a consultation with a bankruptcy attorney today.