What Protections Are Available To Me Under Chapter 13 Bankruptcy?

What Protections Are Available To Me Under Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also sometimes called as a “repayment plan bankruptcy” or “a wage earner’s bankruptcy”, is for individual consumers who are undergoing financial difficulties but are making enough income to repay the debt. It puts a hard-pressed debtor on a repayment plan and offers them various forms of relief. A freeze on the collection is applied as soon as you file for chapter 13 bankruptcy Culver City, so creditors and collectors cannot call you, visit you, garnish your wages, or intimidate you by any other means. It halts, at least temporarily, foreclosure and repossession proceedings, and also protects cosigners. By filing for Chapter 13 bankruptcy Culver City, you are provided more time to repay the loan, and often don’t have to repay the full amount of the debt.

The debtor is provided three to five years to repay the loan. To fulfill the terms of Chapter 13 bankruptcy Culver City plan, the debtor must make all payments on time, and cannot take new loans without the approval of the court.

Should you file for Chapter 13 bankruptcy?

Though Chapter 13 bankruptcy Culver City protection can be filed “pro se” or without the help of an attorney, the process is complex, and you may end up making mistakes due to your inexperience, and the bankruptcy court may refuse the petition. It’s here that bankruptcy consultation, such as the one provided by the reputed law firm Recovery Law Group, can be of great help to you. With bankruptcy consultation Fort Worth, you will get a host of services for the full settlement of your bankruptcy case. First of all, the legal expert will decide whether filing for Chapter 13 bankruptcy would be the best course of action in your circumstances.

The procedure for filing Chapter 13 bankruptcy

You will be assisted in gathering all necessary documents including W-2 forms, statements of banks, and a current credit report to identify all the creditors. The legal expert providing you with bankruptcy consultation Fort Worth will file a plan for repaying to creditors. Under the plan, you will pay regular amounts to the trustee and begin sending money within 30 days of filing the bankruptcy.

Three to seven weeks after the bankruptcy petition is filed by the attorney providing bankruptcy consultation Fort Worth, the trustee will hold a meeting of the creditors that you must appear and be put under oath. A court hearing is held within 45 days which is presided over by a bankruptcy judge. Usually, the plan is approved by the court but if the creditors object to it, you may be asked to submit a modified plan to the court.

Can you file for Chapter 13 bankruptcy again?

There is also a debt limit for both secured and unsecured debts to file for Chapter 13 bankruptcy Culver City which is adjusted from time to time to keep up with inflation. If you find yourself in deep debt all over again after filing for Chapter 13 bankruptcy Culver City, your bankruptcy lawyer at the Recovery Law Group may help you with filing another Chapter 13 bankruptcy within two years of filing the previous bankruptcy. However, if previous bankruptcy was filed under Chapter 7, you will have to wait for four years to try Chapter 13 bankruptcy.