Chapter 13 Bankruptcy
The trend is toward more Chapter 13 bankruptcy filings as more people are finding themselves ineligible for traditional Chapter 7 bankruptcy due to the latest changes in bankruptcy law.
Chapter 13 bankruptcy generally permits you to keep your assets, therefore, if you are a person who has substantial assets, as well as a regular income sufficient to repay all or some of your debts, filing Chapter 13 bankruptcy may be the right step for you.
An experienced Washington bankruptcy lawyer may be the key to achieving your financial goals through a Chapter 13 bankruptcy filing.
Beyond guiding you through the Chapter 13 process Seattle Bankruptcy attorney David Kubat will instruct you as to the best course of action. Chapter 13 isn’t for everyone, and there are numerous factors to consider. No matter your situation, you can always trust Mr. Kubat to provide honest legal counsel. Chapter 13 will:
- Protect and keep all your assets
- Stop Foreclosure Sales and catch up on past due mortgage payments over time
- Remove some judgment liens, and sometimes second mortgages liens, on your property
- Discharge unsecured debts (such as credit cards, medical bills, certain taxes and more) by doing an affordable repayment plan from 0%-100%
- Usually, repay unsecured debts with zero percent interest
By filing Chapter 13 bankruptcy, you are essentially entering into a repayment plan that permits you to repay all or a portion of your debts over a certain time period. Interest rates are often lowered or eliminated altogether.
Chapter 13 bankruptcy proceedings start when you file a petition along with various required forms regarding your:
Filing Chapter 13 bankruptcy also requires the filing of a repayment plan at the time of or shortly after the petition is filed, for court approval. Within 30 days of filing Chapter 13 bankruptcy, you have to begin making payments to the trustee as per the terms of your plan.
A Chapter 13 bankruptcy filing will result in a temporary order of the court that stops your creditors from taking further action to collect their debts from you, such as by:
- garnishing your wages
- attaching your bank account
This court order typically remains in place throughout your bankruptcy proceedings. Therefore, a Chapter 13 bankruptcy filing may be a way to save your house from foreclosure, your car from repossession, or to handle IRS debt as long as payments are made according to the Chapter 13 plan.
The trustee holds a meeting of creditors after the Chapter 13 bankruptcy filing. You must appear and answer any questions and any potential problems with the proposed plan must be resolved.
The bankruptcy court will then schedule a confirmation hearing in order to determine whether your plan is feasible and appropriate.
If approved it is up to you to make the plan work by complying with the terms of repayment. You must not incur new debts during the repayment period without Court approval.
If you complete the plan successfully, you will then receive a discharge of any remaining amounts owed on your debts included in the plan.
The Law Office of David A. Kubat is a debt relief agency. Attorney Kubat helps people file for bankruptcy relief under the Bankruptcy Code.