Chapter 13 Bankruptcy
In contrast to the relatively quick Chapter 7 process, Chapter 13 bankruptcy is a reorganization of a consumer’s finances that allows them to pay back something to creditors over a 3-5 year period based on their income for a family of their size. With the help of a bankruptcy attorney, Chapter 13 filers create a payment plan that allocates their disposable income to make a monthly, consolidated payment to creditors. We’re sure the reader would like to know: what constitutes disposable income? For purposes of bankruptcy, disposable income means what you have left over after subtracting allowed expenses from your gross earnings. Some expenses will be determined by your actual out-of-pocket costs; others will be set by national local standards as calculated by the IRS. The less disposable income you have, the lower the percentage of unsecured debts you pay back to creditors throughout the life of your Chapter 13 plan. At the end of the process, debts that remain outstanding are discharged.
Last updated on:
Will a Chapter 13 Plan Look Better on My Credit Report Than Chapter 7?
Many people find it difficult to choose between Chapter 7 or Chapter 13 bankruptcy. Both have their advantages and disadvantages depending on your financial situation, but which one stays on your credit report longer? Does Chapter 13 look better to creditors long term as you try to improve your credit score? The short answer to…Read more
How Long Does Foreclosure Take?
If you’re running into trouble making your mortgage payments, you may be wondering: How long does it take for a bank to foreclose on your home? Most lenders will not begin foreclosure proceedings until a borrower is 3-6 months behind on their payments. Although missing a single payment is technically a default under the terms…Read more
Converting From Chapter 7 to Chapter 13 Bankruptcy
Converting to Chapter 13 Bankruptcy It is possible to switch from Chapter 7 to Chapter 13 bankruptcy after you’ve already filed? Yes, assuming you’re acting in good faith. For example, converting your case might make sense if you have fallen behind on mortgage payments, and risk losing your home to foreclosure. Chapter 7 bankruptcy is…Read more
What Documents Do I Need to Bring When I First Meet with My Bankruptcy Attorney?
Last updated Feb. 28, 2018. Filing for bankruptcy isn’t always easy. One of the biggest burdens under the “new” bankruptcy law that was forced upon debtors and their attorneys in 2005 was the requirement to produce volumes and volumes of documents. In addition to the formal schedules and statement of affairs, you’ll need to get together…Read more
Bankruptcy and Foreclosure: The Consumer’s Overview
Last updated Sept. 21, 2017. OK, here’s the deal with bankruptcy and foreclosure. Despite what you may have heard, filing for bankruptcy does not necessarily permanently stop a lender from foreclosing on your home. Filing for bankruptcy will always temporarily stop the bank foreclosing on your home. This is true regardless of which chapter you…Read more
What Is the Automatic Stay?
Those suffering from excessive debt are often being pursued by a host of different creditors. The constant collection calls and letters can be overwhelming. The Bankruptcy Code’s automatic stay stops all creditors and collection activity in its tracks. The automatic stay is one of THE biggest benefits of filing bankruptcy, if not the main reason…Read more