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Understanding Chapter 13 Bankruptcy
Filing Chapter 13 bankruptcy may leave you feeling overwhelmingly stressed. It is a complex legal process that can take months, and, in some cases, years. On this page, I will answer questions regarding Chapter 13 bankruptcy that my clients frequently ask.
What Is Chapter 13 Bankruptcy?
Chapter 13 is a form of bankruptcy that establishes a payment plan for consumers. It allows consumers to repay their debts over a period of three to five years. At the end of this period, the court will discharge any qualifying debt that remains.
How Does It Work?
The first step is to file a petition for Chapter 13 with a Pennsylvania federal bankruptcy court. In addition, you must provide tax records and extensive documentation about your finances. Your petition will trigger an automatic stay, prohibiting creditors from taking collection actions against you. The automatic stay will also halt foreclosure proceedings if your home is in foreclosure. The automatic stay is in effect until a bankruptcy judge terminates the automatic stay, which requires a motion and hearing. Next, you must meet with a bankruptcy trustee and your creditors to discuss repayment options. After this, a judge will typically grant Chapter 13 bankruptcy, and you can begin your repayment.
Is Chapter 13 Right For Me?
Chapter 7 bankruptcy, which is the other option for private consumers who are considering bankruptcy, requires an income below a certain threshold. Chapter 13 may be a good choice if you have significant assets and enough income to repay your debts. Under Chapter 13, you must repay your creditors, but can keep your valuable possessions. If you have a previous bankruptcy, however, you will not qualify for Chapter 13. In Chapter 13, how much you repay your creditors depends on a multifaceted financial analysis.
Is It Possible To File Chapter 13 On My Own?
While it is technically possible to petition a court for Chapter 13 on your own, this may be a mistake. The bankruptcy process can be exceedingly complicated. A simple mistake could prove costly and time-consuming. It is in your best interests to work with a lawyer who understands state and federal bankruptcy laws.
Schedule An Appointment To Discuss Chapter 13
You do not have to face Chapter 13 bankruptcy alone. I serve clients in Montgomery County, in Bucks County and throughout the Philadelphia area. Contact me, attorney Michael E. Eisenberg, today. Call 267-728-4535 or send an email.
We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.