Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows an individual who has a regular income, but is struggling to keep up and allows them to enter into a repayment plan that works with their budget. Often people who file Chapter 13 bankruptcy are behind on their house or a car payment or both. A Chapter 13 Plan also allows an individual to create a plan to pay their unsecured debts such as credit card and medical debts. Often these plans pay a small percentage of the unsecured debt over a three to five year period.
With a Chapter 7 bankruptcy discharge, most unsecured debts are wiped out, and you don’t have to repay them. So the question naturally arises as to why anyone would choose to file a Chapter 13 and repay a portion of his debts. Chapter 13 can offer many advantages over Chapter 7. In most instances, a Chapter 13 bankruptcy case is filed to stop a foreclosure on the individual’s home, or to stop a car repossession. A Chapter 13 Plan proposes to pay any past due amounts on your mortgage or auto loans over a period of 3 to 5 years, allowing the individual to keep their house and car. You are still responsible for resuming the “regular payments” after filing Chapter 13. If your car has been recently repossessed, a Chapter 13 case filing will require the lender to return the car to the individual.
Another reason for a Chapter 13 case filing is due significant equity in your home or other assets. If you have too much equity in your real estate and you file a Chapter 7 petition, the bankruptcy judge may order the Chapter 13 trustee to sell your home in order to pay your creditors. In this situation, Chapter 13 may allow you to keep your home. A Chapter 13 case may also be necessary because the individual has a monthly income that is too high to qualify for a Chapter 7. There is a process of assessing if your income is too high to file Chapter 7. This is known as the “Means Test” and this will be explained to you at your first meeting with your local bankruptcy attorney. Other benefits include “valuing” auto liens to pay the value of the car rather than what is owed and valuing IRS tax liens in some situations.
If you feel overwhelmed because of high debt balances and are unable to pay your monthly bills, filing Chapter 13 may be the fresh start that you need. There are requirements you must meet and our South Carolina chapter 13 bankruptcy attorney, Daniel Stone, will be happy to discuss your individual situation with you.
When you hire the Stone Law Firm, you can rest easy knowing that the attorney you have chosen is backed by over 20 years of experience. Every case we take is examined with care and great attention to detail, and we help clients find the solution that works best for their specific situation.
Finally, here at the Stone Law Firm, we often here some of the same Chapter 13 questions:
COMMON CHAPTER 13 QUESTIONS
• What is the success rate of Chapter 13?
• Can a creditor refuse Chapter 13?
• Does Chapter 13 forgive debt?
• What is the average monthly payment for Chapter 13?
• Do you pay 100% in a Chapter 13?
• Who are the Chapter 13 Trustees in South Carolina?
• What is a Chapter 13 Conduit Plan?
• Is my car loan paid inside the Chapter 13 Plan?
• Does Chapter 13 stop a foreclosure sale?
• Does a Chapter 13 Plan treat IRS tax debts and liens?
• Does Chapter 13 stop credit card and medical debt collection lawsuits?
• Why do most Chapter 13 plans fail?
• How long does a Chapter 13 remain on my credit?
• What is the debt limit for Chapter 13?
• What is the filing fee for Chapter 13
* Where is the Bankruptcy Courts in SC?
* What is the average Chapter 13 payment?
* Can a Chapter 13 stop a Repo in South Carolina?
* Keys to success in a Chapter 13
If you want to know the answer to the above questions or other Chapter 13 questions, please feel free to call to set up a free consultation.
CHAPTER 13 ATTORNEY NEAREST ME
We serve clients all over South Carolina with office locations in Columbia, Irmo, Florence, and Greenville. We also help clients in Aiken, Sumter, Orangeburg, Camden, Myrtle Beach, Charleston, Spartanburg, and Rock Hill. If you are looking for an experienced chapter 13 bankruptcy attorney in South Carolina , contact us today to learn how we can help you with your debt! Call (803) 407-6565 or request an appointment using our online form.