Please be reminded that the information contained on this site is only an overview. Each individual's situation is unique. Our website has been designed to provide you with a user-friendly overview of the bankruptcy process and how we may be able to assist you. Be advised that the information herein does not constitute legal advice. Our attorneys are here to provide you with a free, confidential evaluation to review and analyze your situation to determine which options may be right for you.
Bankruptcy may be the answer
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Damita G. Buffington
Attorney at Law
Chapter 13 Bankruptcy is designed for individuals with regular income who desire to pay their debt, but are currently unable to do so under the current terms. Under court supervision and protection, Chapter 13 allows financially distressed individuals to propose and carry out a repayment plan that will pay creditors over a period of three to five years. During this time, creditors are generally prohibited from starting or continuing collection efforts. For individuals who may be behind on mortgage payments and/or car payments, Chapter 13 will allow them to catch up with their payments during the plan, while retaining their property.
A plan to repay your debt is prepared by your attorney. The payment amount is based on your monthly disposable income. That is the income left over after regular and ordinary monthly expenses, such as utilities, insurance, rent/mortgage, food, clothing, transportation, etc. Depending on your individual circumstances, a plan may be devised where your creditors may be paid pennies on the dollar with no additional interest!
Once a plan is filed, you are required to attend a 341 Meeting of Creditors at the office of your assigned Chapter 13 Trustee. At that time, your documents will be reviewed for accuracy, and a determination will be made as to whether the proposed plan is feasible. Several weeks later, a confirmation hearing is held, which is the plan’s final approval step. As a debtor, you are required to begin making your plan payments within 30 days after the plan is filed with the court. At the end of your plan term, you will receive a discharge of most debt with some exceptions, ie. student loans, child support, some IRS debts, maintenance and child support, and criminal fines and penalties.
Cost: The filing fee for Chapter 13 is currently $310,
and start your case with as little as $750 down!