Chapter 13 – An Ongoing Plan for Protection
Regain Control of Your Finances; Call Our Topeka Bankruptcy Lawyer
Chapter 7 bankruptcy is not a good fit or not possible, Chapter 13 steps in. It is a more elaborate
process. Rather than taking a financial snapshot and doing everything
at once, Chapter 13 allows you to address certain debts through a plan.
You remain within the protection of the bankruptcy court while you pay
back creditors according to your plan. This can give you breathing room
for up to five years.
How Chapter 13 Treats Debts
You pay the debts that would not be dismissed in a Chapter 7 - for example,
non-dischargeable debts and debts on secured property that you wish to
keep. As noted here, Chapter 7 does not address these debts. You "sink
Chapter 13 gives you time, and some nifty tools, to tackle this debt while
staying protected from creditors.
Generally, unless you are extremely wealthy, you will not be required to
pay credit cards, medical bills, and other dischargeable debt. In Chapter
13, these debts are called "General Unsecured." They more or
less match the debts that are discharged in a Chapter 7.
Chapter 13 addresses debts that a Chapter 7 cannot touch, including:
- Secured property you want to keep
- Bounced checks
- Other debts that escape Chapter 7
These debts are all dealt with through the repayment plan. While you are
in the plan, you are protected from creditors, even on debts that are
non-dischargeable. Once you have made all your payments, you receive your
Chapter 13 allows you to restructure certain debts. When dealing with secured debt, you can lower interest rates, stretch
out payment periods, and sometimes reduce the balance owing on the note.
When dealing with taxes, you can cancel penalties once you file. You can
defer paying on student loans while you are in the bankruptcy. The Plan
provides us with a number of powerful tools to restructure your finances.
You Can File a Chapter 13 With Zero Up Front Fees
Your Topeka student loan attorney fees and filing fees go into the basket
as well – you do not need to pay anything up front to file a Chapter
13. We include all costs of filing in the plan payment.
Click Here to Download Our Student Loan Debt Questionnaire
Why should I file a Chapter 13?
Chapter 13 allows you to deal with debts that a Chapter 7 cannot touch , such as secured debt and income taxes. You can defer certain debts that
are non-dischargeable, such as student loans. You can use the protection
of the bankruptcy court to gain some space to address your debts in an
if you are behind on your mortgage and want to keep your house, Chapter
13 will let you catch up on the arrears through the repayment plan. In a Chapter 7, you either have to surrender the house, catch up within
a few weeks, or sign a reaffirmation agreement if the mortgage holder
Chapter 13 can make secured property more affordable, by changing the terms of the note. The Chapter 7 has no ability to do this.
you will not need to pay your attorney and filing fees up front. We get paid, and the court gets paid, through the repayment plan. This
deferment of the legal fees permits you to file quickly in an emergency,
such as an impending repossession, garnishment, or foreclosure. Most Chapter
7 cases require up-front fees.
Free Consultation with Garrett Law LLC
Both Chapters discharge debt and give you a fresh start. Chapter 7 is fast,
cheap and efficient. For those who need more of a helping hand, Chapter
13 may be the best option. Get answers to your pressing bankruptcy questions
by calling a Topeka Chapter 13 bankruptcy attorney from
Garrett Law LLC. Not only do we offer a free initial case evaluation, but we have numerous
years of experience helping individuals and families just like you!
Call our Topeka Chapter 13 bankruptcy attorney today to get started!