Chapter 13 Bankruptcy

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Chapter 13 Bankruptcy in Charlotte

Helping You Get Your Life Back on Track

If you are struggling to pay your debt and you do not qualify for a Chapter 7 case or you want to pay certain creditors, a Chapter 13 bankruptcy may be right for you. Under a Chapter 13 plan, a debtor can consolidate their bills into one monthly payment that is managed by the court. It permits debtors to keep their property while allowing for a new repayment plan (approved by the court) to pay creditors with lower or no interest to the debtor. Filing this type of personal bankruptcy stops foreclosures, repossessions, collection lawsuits and garnishments. At Schwilm Law Firm, PLLC we help you create a manageable plan of reorganization and walk you through each step of the process.

What does Chapter 13 involve?

A Chapter 13 filing centers on the repayment plan. Your plan sets forth how you intend to repay your creditors, whether fully or partially, to satisfy your debt. You make monthly payments to the trustee, who then distributes those payments to your creditors according to the terms of your plan. You must use all of your “disposable income” to pay your creditors. Disposable income is the amount left over after paying your necessary expenses. Your plan must also pay your unsecured creditors at least what they would have received if you had filed a Chapter 7 bankruptcy (which is typically nothing).

Once you have made all of the payments required under your plan of reorganization, you receive a discharge order. This means that if your plan only paid two percent of what was owed to your unsecured creditors (credit card and medical bills), when you receive your discharge order, those debts are eliminated and you are no longer liable to pay them.

When is filing for Chapter 13 the best option?

In a variety of circumstances, you may benefit from filing a Chapter 13 case. For example:

  • If you want to keep possession of nonexempt property, you should file a Chapter 13 bankruptcy.
  • If you want to pay-off a secured loan, such as your mortgage or car loan, and you need time to catch up on your past-due payments before foreclosure or repossession, a Chapter 13 bankruptcy is right for you.
  • If you have debt such as certain tax obligations or student loans that cannot be discharged, you can include these debts in your Chapter 13 plan and pay then off over time.
  • If you have a co-debtor on a personal loan, filing a Chapter 13 case instead of a Chapter 7 case provides protection from creditors for your co-debtor. In a Chapter 7 case, the creditors take collection action against your co-debtor, but in a Chapter 13 case, the creditor is being paid under your plan, so your co-debtor is left alone.

What are the requirements for filing a Chapter 13?

To be eligible to file a Chapter 13 bankruptcy, you must have sufficient income to propose a repayment plan that the bankruptcy court confirms. Other requirements include:

  • You have to file as an individual, business do not qualify. The only way you can get rid of business related debts is if you file as a sole proprietor business partner or owner of a company and include your business debts.
  • The amount you owe cannot exceed a certain number. You may have up to $336,900 in unsecured debts and less than $1,010,650 in secured debts in order to file.
  • In the past 180 days, a prior petition can not have been dismissed. If you petitioned to file Chapter 13 bankruptcy in the past 180 days and it was dismissed due to the fact that you failed to comply with court orders to appear in court, you cannot file again.

Your Chapter 13 filing begins with filing a petition, along with schedules of your assets, debts, income and expenses. Our Charlotte bankruptcy lawyer helps you with all of the necessary paperwork required to file your Chapter 13 case.

Schedule a Free Consultation With a Charlotte Bankruptcy Attorney

Do not put your home or your financial future in the hands of an inexperienced attorney. Hire our bankruptcy lawyer serving the Charlotte metropolitan area with proven results. We provide convenient parking at our Charlotte office. Contact Schwilm Law Firm, PLLC to schedule a free consultation to discuss how a Chapter 13 bankruptcy could help you.