What is a Chapter 13 Lawyer?

Answer 1

A Chapter 13 lawyer specializes in a specific type of bankruptcy law known as Chapter 13. When filing for any type of bankruptcy, it is typically necessary to get in touch with a lawyer in order to make sure that the debtor is able to receive the maximum benefit from the proceedings. Generally speaking, it is usually better to work with an attorney who specializes in the specific type of bankruptcy that is being filed for.

Chapter 13 bankruptcy can be thought of as a form of debt reorganization. This is opposed to liquidation, in which an individual sells off all of their assets in order to pay of the debts that they can. For individuals who can demonstrate an ability to pay off some or all of there debt, but in a different time frame than the original contract required, this may be a better choice. For those who are hoping to keep their property, such as their home and car, this is typically a better option than Chapter 7 bankruptcy. Both Chapter 7 and Chapter 13 bankruptcy are for individuals, not businesses, which typically file for Chapter 11.

With Chapter 13 bankruptcy, you first must visit with a credit counselor and give information about all of your debt. A list of monthly expenses is also required. Any money that is left over will be used to pay off your existing debts. Debt to employees, taxes, child support, and so on take the highest priority. Second priority debts are secured debt, like car payments. Unsecured debt, like credit cards, comes last.

When you file for Chapter 13, creditors can no longer take legal action against you. The Chapter 13 lawyer will field all calls regarding the debt. If you fail to file for bankruptcy before your home goes into foreclosure, your home can still be compensated.

To qualify, the about of debt is limited. Generally, you can not owe more than $900,000 in secured debt and $300,000 in unsecured debt. You must be able to demonstrate that you can repay the debt. Have a Chapter 13 lawyer look over your information to ensure that it is possible for you to handle the payments.

If you find yourself in a situation where you are unable to honor the new payment plan, the court may allow you to convert the Chapter 13 bankruptcy into Chapter 7 bankruptcy. At the end of the bankruptcy period, most of your debts will be erased, although child support, alimony, and student loans typically will still need to be repaid.