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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.

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Chapter 13 Bankruptcy: Advantages and Disadvantages

Most people don’t want to file for bankruptcy at all, but if pressed, will choose Chapter 7 over Chapter 13 every time. After all, who wants to be in bankruptcy for 3-5 years as is required in a chapter 13 case? At first blush, it certainly sounds like a raw deal. Very often I will…

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Does Filing Bankruptcy Mean I Have to Go to Court?

Last updated Dec. 14, 2017. For most people, lawyers and lawsuits conjure up images of wood-paneled courtrooms with scary judges presiding over heated exchanges. “ORDER IN THE COURT! OBJECTION, YOUR HONOR!” Many bankruptcy clients are concerned that a judge will be reviewing and second-guessing their petition. This concern is usually unwarranted. In the vast majority…

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180 Day Wait Period to Refile Bankruptcy After Dismissal

Dismissal of a bankruptcy case is unfortunate and can happen for a number of reasons. The Bankruptcy Code places numerous responsibilities on debtors and failure to comply can jeopardize your case; making it important to consult with a knowledgeable bankruptcy attorney before filing. When a bankruptcy case is dismissed without issuance of a discharge, you…

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