Many people call The Golden Law Group with general questions about bankruptcy. After all, the credit card industry has perpetrated a lot of myths out there. Most people ask about discharging their debts through Chapter 7 bankruptcy and getting a fresh start. That's natural. But people are often surprised to learn that a Chapter 13 plan to restructure and repay some of their debt offers many advantages over Chapter 7.
Some variation of bankruptcy and debt relief laws have existed on our national laws since the Continental Congress. After all, our Founding Fathers were farmers. By definition, bankruptcy simply means that you are petitioning the court for protection against your creditors. Under Chapter 13 rules, your case will be overseen by a trustee, appointed by the court. Your creditors and collection agencies will have to immediately stop harassing you about paying your bills, from the very day you hire an attorney.
When you file for Chapter 13 bankruptcy, you will provide your attorney will all records of your income, property and money assets and debts owed. You will not be required to take a means test to see if you are eligible for filing. Your lawyer will be able to immediately determine, based on your income level, non-exempt assets and debts owed.
Your attorney can work up a proposed debt restructuring and repayment plan of three or five years in duration, depending upon your level of income and the ratio of income to debt owed. This plan will be presented to a judge at the U.S. Bankruptcy Court. Within 45 days, the judge will schedule a Plan and Confirmation Hearing, during which lawyers on both sides will review the details of the plan and argue for any final changes. You are not required to attend the Plan and Confirmation Hearing. Your Golden Law Group attorney will handle all details and represent you in court. Of course, you may attend if you wish.
Upon approval by all creditors, which is typically the case, the judge will approve the terms and confirm the plan. The Trustee will then start disbursing money to your creditors according to the agreed-upon terms of the plan. During the repayment period, creditors are not allowed to act to collect further payments directly from you. Of course, the trustee will also ensure that you do not run up significant further debt while the plan is in force.
After making timely payments and fulfilling the obligations of the plan, any remaining debt not paid in the restructure will be discharged. This typically includes penalties, fees and interests that would have otherwise accumulated over the repayment period.
Get the straight facts about Chapter 13 bankruptcy. Contact a Brandon Chapter 13 eligibility lawyer at The Golden Law Group to schedule a free initial consultation.