Boston Chapter 13 Bankruptcy Lawyer
If you are struggling with debt and considering filing for Chapter 13 Bankruptcy, contact Lowney Law, LLC, for a free consultation with a Boston Chapter 13 Bankruptcy Lawyer. The attorneys at Lowney Law, LLC, will help you decide whether filing for Chapter 13 Bankruptcy is the right option for you.
What is Chapter 13 Bankruptcy?
Unlike Chapter 7 bankruptcy, the Chapter 13 debtor does not liquidate his assets but instead creates a debt repayment plan. Under the plan, creditors are paid based on the amount of income available after the debtor’s living expenses are taken into account. Over the period of three to five years a percentage of the debt will be paid to creditors through the plan. In many cases the debtor pays back less than 1% of his unsecured debt, with the remainder discharged at the end of the plan.
Chapter 13 is often a good option for those who have fallen behind on secured loans such as mortgage or car payments. In some instances, debtors who qualify for Chapter 7 bankruptcy may opt to file a Chapter 13 when they have assets that would be exposed in a Chapter 7 and wish to keep said assets. The attorneys at Lowney Law, LLC, can assist you in making the tactical decision of which chapter to file.
What happens to my debt in Chapter 13 Bankruptcy?
While Chapter 13 is capable of reducing or even eliminating many debts, there are some debts that cannot be discharged. These non-dischargeable debts include most taxes, most student loans, and child support/alimony payments. However, even debts that may not be discharged at the end of the plan can be made part of the plan, helping you to reorganize and manage your debt.
Am I eligible?
To be eligible to file for Chapter 13 bankruptcy the debtor must be an individual. Chapter 13 also places limits on the amount of debt the filer can have. Lastly, unlike Chapter 7 Bankruptcy there is no “Means Test” for Chapter 13 bankruptcy. However, a Chapter 13 debtor must have a regular income above and beyond what is needed to pay their living expenses. This ensures there is money available to be paid into the plan.
What happens once I file?
Once the Chapter 13 bankruptcy petition is filed the “automatic stay” goes into effect. This means creditors must stop their collections efforts. Along with the petition the debtor must submit a repayment plan. The plan provides for fixed payments to the trustee on a regular basis, usually monthly. The trustee distributes the funds to the creditors in accordance with the plan. The first payment becomes due within 30 days of filing the plan. As in Chapter 7 bankruptcy, a “meeting of the creditor” also known as a “341 meeting” is held. The debtor must attend and the trustee and creditors may ask questions of the debtor concerning his finances and the plan. After the meeting, the bankruptcy court must approve the plan. Once the plan is confirmed by the Court, the debtor is required to make regular payments to the trustee as provided in the plan. If during the pendency of the plan your situation changes, you can contact the attorneys at Lowney Law, LLC, to discuss a possible modification to the plan. Upon successful completion of all payments under the plan, the debtor will receive a discharge.
If you are considering filing for Chapter 13 Bankruptcy, Lowney Law, LLC, has Boston Chapter 13 Bankruptcy Lawyers available to help you. If you are struggling with debt, call Lowney Law, LLC, now at 617-364-8000.
