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Chapter 13 Information Center
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Sometimes, bankruptcy is sometimes set off by one unfortunate or tragic event; some consumers simply cannot curb over spending. Filing bankruptcy solves only part of the problem, and there is an urgent need for the continuing assistance of a knowledgeable attorney who can provide solutions to financial problems.
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Filing Chapter 13 Bankruptcy
Chapter 13 - An Overview
Alternatives to filing Bankruptcy
Debts that Remain After a Chapter 13 Discharge
When a Chapter 13 debtor enters into a wage-earner plan, he or she commits the next three or five years' disposable income-that portion of the debtor's income not required to meet the necessary needs of the debtor and his or her dependents-to the repayment of debt. Often, a debtor's income will increase after the plan is in place, and the question arises as to what becomes of this increase in income. Bankruptcy lawyers can answer these and other Chapter 13 questions as they arise, providing information, reassurance, and competent and zealous advocacy throughout the bankruptcy process.
Rebuilding Your Credit after Bankruptcy
Frequently Asked Questions About Chapter 13
Deciding to file for bankruptcy is only the first answer to a long series of questions. In actuality, many questions remain, and the best way to make intelligent, informed answers to those questions is to have the help of experienced, knowledgeable bankruptcy counsel. When questions are answered promptly, correctly, and completely, a consumer can make the best decision as to his or her future, and work as a team with his or her lawyer. Chapter 13 cases are a lengthier, more involved process than chapter 7 cases, so it pays to have someone on your side who is equipped to resolve issues quickly and accurately.
Q: How does a Chapter 13 bankruptcy case work?
A: Chapter 13 of the federal Bankruptcy Code allows a consumer to repay all or a majority of his or her debts through a payment plan approved by the Bankruptcy Court. When the plan is in place, creditors generally are prohibited from collecting debts directly from the debtor. Instead of paying his or her creditors directly, the debtor pays a certain amount every month to the Chapter 13 Trustee (there are some exceptions, such as some leases payments that are made directly to the lessor), and the Trustee distributes the money to the creditors, as provided in the Chapter 13 plan. When the last payment is made, the debtor is no longer liable for the remainder of his or her dischargeable debts.
Q: How does a Chapter 13 bankruptcy case work?
A: Chapter 13 of the federal Bankruptcy Code allows a consumer to repay all or a majority of his or her debts through a payment plan approved by the Bankruptcy Court. When the plan is in place, creditors generally are prohibited from collecting debts directly from the debtor. Instead of paying his or her creditors directly, the debtor pays a certain amount every month to the Chapter 13 Trustee (there are some exceptions, such as some leases payments that are made directly to the lessor), and the Trustee distributes the money to the creditors, as provided in the Chapter 13 plan. When the last payment is made, the debtor is no longer liable for the remainder of his or her dischargeable debts.
Chapter 13 Resource Links
Legal Information Institute
An overview of the topic of bankruptcy, along with state and federal materials, from Cornell University
Debt and Consumer Information
provided by Nolo
FindLaw Forms
Includes forms for local bankruptcy courts.
An overview of the topic of bankruptcy, along with state and federal materials, from Cornell University
Debt and Consumer Information
provided by Nolo
FindLaw Forms
Includes forms for local bankruptcy courts.
The bills are stacking up, demanding calls and letters are arriving with increasing frequency, and despite the best of efforts, the overdue debts just cannot be paid when due. In such cases, filing bankruptcy under Chapter 13 of the Bankruptcy Code may provide a solution to what seems like an insurmountable problem. If you are facing serious financial challenges, it is very important that you seek the counsel of an experienced bankruptcy attorney to determine whether filing under Chapter 13 may be right for you. Once considered a last resort, bankruptcy has evolved into an accepted method of resolving serious financial problems.
Bankruptcy law provides two basic forms of relief: (1) liquidation; and (2) rehabilitation, also known as reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. A reorganization or rehabilitation bankruptcy under Chapter 11 or 13 of the Bankruptcy Code is, however, the option often preferred by the courts, and creditors may be provided with a better opportunity to recoup what they are owed under these methods.
Bankruptcy law provides two basic forms of relief: (1) liquidation; and (2) rehabilitation, also known as reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. A reorganization or rehabilitation bankruptcy under Chapter 11 or 13 of the Bankruptcy Code is, however, the option often preferred by the courts, and creditors may be provided with a better opportunity to recoup what they are owed under these methods.
A Chapter 13 discharge affects only those debts provided for by the plan. Any debts not provided for in a wage-earner plan will remain, and the debtor will have to pay them in full, even after discharge. Additional exceptions to a Chapter 13 discharge include, generally, claims for spousal and child support; educational loans; drunk driving liabilities; criminal fines and restitution obligations; and certain long-term obligations, such as home mortgages, that extend beyond the term of the plan. A lawyer experienced in bankruptcy law can explain in detail which debts are "erased" as a result of a Chapter 13 discharge and which will remain the obligation of the debtor.
At the office of Frego & Brodsky, P.L.C., our attorneys practice exclusively in the area of bankruptcy. We are fluent in the language of the new bankruptcy laws and can effectively explain how these changes may affect your ability to file for Chapter 13 protection. Our firm prides itself on offering clients debt relief while still maintaining their dignity.
Please feel free to review the content below. It is designed to enhance your general knowledge of Chapter 13 bankruptcies and a number of related issues. Contact our office to schedule a free case evaluation with a member of our experienced bankruptcy team.
Please feel free to review the content below. It is designed to enhance your general knowledge of Chapter 13 bankruptcies and a number of related issues. Contact our office to schedule a free case evaluation with a member of our experienced bankruptcy team.
Debtors who have faced obstacles to paying off their debts when due have no doubt received more than their fair share of demanding letters and phone calls, and the thought of filing bankruptcy and getting rid of their debts, and thus the constant demands, can be quite appealing. Before making a decision to pursue that route, which can have long-term effects on credit rating and the ability to make large purchases, debtors may wish to consider other, less drastic alternatives. Talking these options through with an experienced bankruptcy attorney can help make sense out of the myriad complex and confusing choices that must be made at an already stressful time.
Effects of a Salary Increase on a Wage-Earner Plan Under Chapter 13
Bankruptcy has a long-lasting impact on a person's credit rating, and on his or her ability to obtain credit in the future. The impact is not entirely negative. In some cases, filing bankruptcy may actually improve a bad credit rating. In addition, there are a number of things a person can do to improve his or her credit after bankruptcy. An experienced bankruptcy attorney can offer valuable advice on how credit can be improved after a bankruptcy, and how to work for a better financial picture.
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Home | What To Ask Before You Hire An Attorney | Testimonials | Practice Overview | Bankruptcy Chapter 7 | Bankruptcy Chapter 13 | Bankruptcy News | Non-Bankruptcy Alternatives | Firm Overview | Christian Debt Relief | What Can I keep? | Stopping Creditor Harassment | Who Files for Bankrptcy | FAQs | Attorneys | Contact Us
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Dearborn Heights
23843 Joy Road
Dearborn Heights, MI 48127
Phone: (313) 565-4252
(800) 978-4788
Dearborn Heights
23843 Joy Road
Dearborn Heights, MI 48127
Phone: (313) 565-4252
(800) 978-4788
Frego & Brodsky, P.L.C.
Attorneys at Law
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