What is a Chapter 13?
Bucks County What is Chapter 13 Bankruptcy
In Bucks County, it is often misunderstood exactly what is a Chapter 13 bankruptcy. Briefly, it requires making payments over time to creditors through the U.S. Trustee after filing Chapter 13 bankruptcy. The payment plans can be as short as a few months, or as long as five years. Some people have problems that cannot be taken care of with a Chapter 7 bankruptcy, and are better off filing a Chapter 13 bankruptcy plan.
The following debts and problems can often be handled more advantageously in a Chapter 13 bankruptcy:
- House payments that are several months behind
- Car payments that are several months behind
- Reducing a car payment to an affordable level
- Reducing a furniture or household payment to an affordable level
- Moderate to large NSF Checks
- Child Support
- Criminal and Traffic Ticket Fines
- Reinstating a suspended driver’s license
- Injuries caused by your intentional conduct (such as assaulting someone)
- Unpaid alimony or spousal maintenance
- Above the median income on the means test
Chapter 13 bankruptcy information can be found by asking a qualified Bucks County bankruptcy lawyer. Frequently, filing a Chapter 13 bankruptcy will help an individual who is behind on payments for secured property, such as their home or their car. The Chapter 13 bankruptcy can help an individual “catch up”
Any individual, even if self-employed or operating an unincorporated business, is eligible for Chapter 13 relief as long as the individual’s unsecured debts are less than $360,475 and secured debts are less than $1,081,400. Filing Chapter 13 bankruptcy is not an option for a corporation or partnership.
A Bucks County individual cannot file under Chapter 13 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. A debtor may be time-barred by the Chapter 13 bankruptcy trustee if they have filed multiple Chapter 13 bankruptcies over a period of time. Again, it is always best to confirm your options and strategy with a Bucks County bankruptcy law firm.
Behind Payments, Child Support, Chapter 13 Bankruptcy Information & More
Perhaps most significantly, Chapter 13 bankruptcy offers individuals an opportunity to save their homes from foreclosure if they are behind on payments. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the Chapter 13 plan on time. Another advantage of Chapter 13 bankruptcy is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the Chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers. Finally, Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a Chapter 13 bankruptcy trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under Chapter 13 bankruptcy protection.
I understand this may be confusing, so before filing Chapter 13 bankruptcy, please call me for Bucks County Chapter 13 bankruptcy information and I will provide you with a free consultation.
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