Chapter 13 is known as reorganization bankruptcy because it requires debtors to repay most of their debt through repayment plans. When you file this type of bankruptcy, you must submit a proposal to the court that includes how you intend to pay back debt which may include overdue mortgage payments, car loans, and other types of debt.
Repayment plans are determined by:
If you are interested in filing for Chapter 13, contact our Charlotte bankruptcy lawyer at the Law Office of Kimberly A. Sheek. We can review your situation to determine whether Chapter 13 is right for you or if you qualify for Chapter 7 bankruptcy. Our law firm puts clients first and works hard to make sure that you receive effective guidance and care during the process.
Chapter 13 bankruptcy is a proven method that has helped countless debtors resolve their financial problems. If you do not qualify for Chapter 7, are facing foreclosure of your home, repossession of your vehicle, and large delinquencies, then you can benefit from filing for Chapter 13. The moment you file for bankruptcy, all collection actions must be halted. This means that your foreclosure and repossession will pause, and creditors are not permitted to harass you. Chapter 13 petitioners can also keep most of their possessions, such as their home and car.
During a Chapter 13 case, a Trustee will be appointed to review the proposed repayment plan from the debtor. There will be a meeting of creditors where the repayment plan is discussed with creditors. Next, there will be a confirmation hearing where the court will approve or reject the proposed plan. Once the plan is approved, you must begin making payments.
Chapter 13 bankruptcy can take anywhere from 3 to 5 years, after which the remaining debt will most likely be discharged once you have completed your payments.
For more information about filing for Chapter 13 or another type of debt relief option, contact our law firm. We can discuss your debt and advise you on the best possible way to resolve them.
Contact us at (704) 842-9776 to speak with an experienced attorney.