Three Big Questions About Chapter 13 Bankruptcy

Can I keep my car in Chapter 13 Bankruptcy? Yes, you can keep your car through Chapter 13.  If your car is paid in full, it will just increase the amount that you have to pay back to your creditors based on the equity in your car.  If you have a car that’s worth $10,000, you’re going to have to pay back at least $10,000 worth of your debt which will increase your plan payment but you will be able to keep your car.  Conversely, if you are behind on your car and it’s either in danger of being repossessed or already being repossessed, you can file a Chapter 13 bankruptcy and pay for your car through the bankruptcy. There are major benefits to paying for a car through a Chapter 13 + Read More

What People Want To Know Most About Chapter 13 Bankruptcy

What is a Chapter 13 bankruptcy?  A Chapter 13 bankruptcy is a reorganization of your debt or a repayment plan through the federal government of anywhere from 3 to 5 years.  Chapter 13 bankruptcy is a very complicated process; much more complicated than Chapter 7 so an attorney is definitely something you should acquire before filing Chapter 13.  Chapter 13’s can be looked at as credit consolidation through the federal government where you put all your debt into one pot; you make one monthly payment to a trustee and the trustee repays your creditors based on the priority set up in the Bankruptcy Code.   Good reasons to file Chapter 13 are if you have fallen behind on your home and + Read More

Will I lose my house in Chapter 13 Bankruptcy?

The honest answer is it depends.  You will certainly have the ability to keep your home provided that you make timely payments.  Allow me to explain.  One of the main benefits of filing Chapter 13 or the main reason why people file Chapter 13 is in order to save their real estate and other property.  Property can be saved through Chapter 13 by putting everything you are behind on the mortgage, something called mortgage arrears, into your bankruptcy plan and paying that back over a three to five year period.  You can also put property taxes and the like into your bankruptcy plan in order to repay those debts through your bankruptcy.  The total that you are behind on your mortgage needs to be + Read More

Chapter 13 Bankruptcy Can Help In Many Ways

Chapter 13 bankruptcy can help you in a ton of ways if you are struggling financially.  The first way that Chapter 13 can help you is to save your house.  If you have fallen behind on your mortgage payments because of the loss of job or illness or just unexpected expenses, you can put what you are behind on your mortgage (the arrears) into your bankruptcy reorganization plan; that way you can pay the amount that you fell behind over 3 to 5 year period and resume making the regular mortgage payment.  If you fall behind on your property taxes, you can pay those property taxes through Chapter 13 bankruptcy as well.  Reorganizing Your Financed Vehicle If you fall behind on your financed car, + Read More

Information About Debtor’s 341 Meeting of Creditors – Bankruptcy

A creditors’ meeting is required under section 341 of the Bankruptcy Code.  In simple terms, it is a meeting of the minds between the parties present at the meeting.  The parties that will be present at the meeting will be you, the debtor; the debtor’s attorney, and a representative from the trustee’s office.  If you are in Chicago, Cook County, the trustee will be either Marilyn Marshall or Tom Vaughn.  If you are in Lake County or DuPage County or Will County, then  Glenn Stearns will be your trustee. The creditors’ meeting is nothing to be scared about.  As long as you are upfront and honest with your attorney when you originally met with him, the creditors meeting should be no + Read More

What do I need to do before filing for Chapter13 Bankruptcy?

The very first thing you need to do before filing for Chapter13 is to meet with an experienced attorney in your area to talk about your case. Most attorneys will have a bankruptcy questionnaire which you will fill out in advance or at your meeting. The questionnaire is a detailed listing of all of your assets, all of your liabilities and your statement of financial affairs. By filling out this questionnaire, the attorney will start to understand what your situation is. You may be trying to save a home that’s in foreclosure. You might be trying to repay non-dischargeable debt over time. You might have disposable income and you just want to protect all of your property and repay either all or + Read More

How does a Chapter13 Bankruptcy plan actually work?

A Chapter13 plan is a very complicated mathematical computation which is why you should always have an attorney when filing Chapter 13.  A Chapter13 plan is determined by three factors, your income, your expenses and your assets.  The court only will approve a Chapter13 bankruptcy if you can afford it which is why it’s such a powerful tool.  For instance, if you bring in $1000 a month in income and have $800 a month in expenses, the court won’t approve a Chapter13 repayment plan of over $200 a month.  This is good for some people and bad for others because your Chapter13 plan has to be something called feasible.  You have to show that you’re able to make the payments.  For instance, if you + Read More