• Save your house from foreclosure
• Save your vehicles from repossessions
• Protect your assets
• Pay substantially reduced amounts on unsecured debt (in most cases, such as high-interest credit debts)
• Affordable Chapter 13 repayment plans consolidating all of your debts
• Most of my attorney fees are paid monthly through the 13 trustee’s office
• Helping you throughout the entire Chapter 13 plan from start to finish

Our dedicated legal team at Andrade Law Office, LLC is attentive in providing personally tailored solutions to the unique bankruptcy dilemmas and financial struggles that our clients face. Our client-focused approach starts from the first moment you bring your situation to the attention of our law firm and will never waver throughout the entirety of your bankruptcy case. Having a skilled Middletown Chapter 13 bankruptcy lawyer by your side helps a lot and we can help you find the best course to take.

Who Is Eligible for Chapter 13 Bankruptcy?

Before you decide whether Chapter 13 is right for you, it’s important to determine if you meet the eligibility requirements, which include the following:

• Limitations on secured and unsecured debts
• Enough steady disposable income to make plan payments
• Current on tax filings (although you can have tax debt)

Businesses may not file Chapter 13; however, if you have business-related debt that you’re personally responsible for, you may be able to include that in your payment plan.

How Much Does Chapter 13 Cost?

When you file a Chapter 13 bankruptcy, you will have to pay a filing fee, which varies each year. You will also be responsible for your legal fees. However, those may be included in your payment plan and stretched out over a three to five year period.

You will also have to take credit counseling courses or “debtor education” before and after filing your case. Those fees can cost between $25 and $35 depending on where you find your course. You may qualify for a course at reduced rates if you cannot afford to pay for one. However, because Chapter 13 filers typically have some disposable income, they are usually expected to pay for debtor education. The U.S. Trustee’s website has a list of credit counseling and debt education agencies that are approved.

How Debt Is Handled in a Chapter 13 Bankruptcy

Each type of debt is handled differently in a Chapter 13:

• Priority Debt – Must be paid in full through your payment plan. This includes most tax obligations, child support, alimony, and other legally ordered debts.
• Secured Debt – Debt that is tied to property. If you want to keep your property, including homes and cars, you will have to get these payments current.
• Unsecured Debt – Debts that are not associated with property, such as credit cards and medical debt, may be paid through your payment plan. Anything left at the end of your payment plan may be discharged.

The length of your payment plan will depend on several factors, including your income and debts. Most people who file Chapter 13 will opt for a five year repayment plan, which can make payments more manageable. However, it is possible to have a payment plan that ranges between three and five years. Your Chapter 13 bankruptcy lawyer can help you decide on a plan that works best for you.

What If I Can’t Make My Chapter 13 Plan Payments?

If you file for Chapter 13 but later are unable to make payments, you may be able to adjust your situation. You are not allowed to just opt out of the plan. If your income decreases, you have the option of modifying the amount you’re paying to unsecured creditors. However, for priority and secured debts, you will be expected to continue making agreed upon payments. It’s best to work with the bankruptcy court and your attorney to make necessary changes. Don’t just suddenly stop making payments.

Chapter 13 vs. Chapter 7: Which Is Best for Your Situation?

While Chapter 7 offers many advantages, it’s best to speak to a bankruptcy attorney about which chapter best fits your needs. If you want to keep your property instead of liquidating it and repaying creditors, then Chapter 13 may be right for you. But if you do not qualify for Chapter 7 through the means test, then Chapter 13 can offer you a good alternative.