Chapter 13 bankruptcy is perhaps the most popular of all bankruptcy chapters. It is a process that most people who want to save their assets consider and it can take up to 5 years. Under chapter 13 of the bankruptcy code, no liquidation applies. Instead, an individual is given an opportunity to repay all their debts as outlined in a tightly controlled budget plan that is overseen by a trustee appointed by a bankruptcy court.
Hames, Anderson, Whitlow & O’Leary, P.S., handles debtor and creditor bankruptcy cases in Richland, Pasco, Kennewick and surrounding areas. We are a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.
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How Chapter 13 Works
Chapter 13 is basically meant to help an individual reorganize his or her debts by coming up with a suitable repayment plan. It ensures that certain creditors are paid within a specified period of time. The overall income of the individual making the filing will be analyzed using the means test. The disposable income will then be obtained and this is used to come up with a monthly payment plan. There are cases where some creditors will not be paid but this will depend on a number of factors. Certain payments are given high priority and must be included in the repayment plan. They include things like child support and tax debts.
How to Quality for Chapter 13 Bankruptcy
For you to file a chapter 13 bankruptcy you will need to pass several tests. First, the filings must be made in good faith. This simply means that you should have all the right intentions to follow the repayment plan as it is and not commit some fraudulent activities like misrepresenting your income. The other test is done to ensure that the unsecured creditors are paid some amount according to the proposed repayment plan.
The means test basically compares your monthly income and expenses. You will take this test if you make more than the median income for your state. If you still have money at the end of the month, after all expenses are deducted, you will be required to pay part of your unsecured debts.
Remember This Prior to Filing Chapter 13 Bankruptcy
Even though chapter 13 bankruptcy is considered one of the most favorable bankruptcy chapters, it comes with its own unique restrictions. For a start, you must strictly adhere to the repayment plan. In case you do not make the payments on time, you will face stringent actions.
After adhering to the terms of the repayment plan, all your debts will be discharged. This can take several years. However, there are some non-dischargeable debts like child support which will still remain at the end of the plan.
Hames, Anderson, Whitlow & O’Leary, P.S., has the knowledge and experience you need to get through this trying time as quickly and efficiently as possible with the best possible outcome for your case. We are Kennewick, Pasco, and Richland bankruptcy attorneys you can count on.
Don’t lose any more money. Now is the time to act.
Call us at 509-586-7797
Hames, Anderson, Whitlow & O’Leary, P.S., serves creditor and debtor bankruptcy needs for the Tri-Cities (Richland, Pasco, Kennewick, West Richland) and surrounding areas including Hermiston, Benton City, Prosser, Grandview, Sunnyside, Finley, Burbank, Desert Aire, Mattawa, and Othello.
For more information regarding bankruptcy please visit our Bankruptcy FAQ’s.