A Chapter 13 Bankruptcy is often referred to a “Reorganization” or repayment of debts. A Debtor’s creditors are repaid (anywhere from 1% to 100%, depending on the Debtor’s financial situation) over a 3 to 5 year period, known as a “plan”.
The reasons why Debtors file for Chapter 13 Bankruptcy rather than Chapter 7 are (1) a Debtor makes too much money to file Chapter 7; (2) there are non-exempt asset(s) at risk of liquidation in 7; and/ or (3) the Debtor is behind on payments on a secured asset that he wants to retain, such as a mortgage or car payment. If you are facing foreclosure or reposession, Chapter 13 is a way to save and retain your assets.
You will have a free initial consultation where we will review your history, your financial situation and your options.
If you choose to move forward with a bankruptcy filing, you can anticipate a certain procedure in a Chapter 13 case, which is set forth as follows:
1. You pay the retainer and costs that will be fully explained to you. Your attorney will then meet with you to pull your credit and review the paperwork required for filing.
2. Our office will prepare your bankruptcy paperwork (known as schedules). The bankruptcy schedules are detailed listings of your assets, liabilities, budget and financial affairs. We will work with you to make sure that the schedules are complete and accurate so your case goes as smoothly as possible.
3. Your attorney will prepare a Plan on how to deal with your creditors. The proposed plan of reorganization is usually anywhere from 3 to 5 years.Your attorney will meet with you to thoroughly review and sign the schedules and plan and file your case with the Court.
4. Shortly after the schedules have been filed with the Court, you will receive the time and date of your Meeting of Creditors (known as the MOC). You and your attorney will meet to thoroughly prepare you for the MOC. We will discuss where to go, when to be there, what to wear, what to bring and what will be asked of you. Your attorney will be with you at the MOC.
5. Once you have completed your plan payments, you should receive a discharge.
6. After you are granted a discharge, your attorney will meet with you for an Exit Conference where we will review where you have been, where you are and where you plan to go from a financial standpoint.
Your attorney is with you every step of the process--- and we will give you tools to help you achieve a successful financial future.