A Chapter 13 bankruptcy filing allows individuals with a regular income, including income from self-employment, to repay a portion of their debts through a court-approved plan that typically lasts from three to five years. Our clients pay from 0% to 100% of their unsecured debts during the plan, based on their household size and budget, and the remaining unsecured debt is generally discharged upon completion of the plan.
Chapter 13 is often an alternative for individuals who do not qualify for Chapter 7, want to retain their home and make up the arrearage on their home loan throughout the term of the plan, or have un-exempt assets they want to retain. Chapter 13 also allows homeowners the opportunity to “strip,” or remove, second or third liens on their home if the liens are fully unsecured (i.e., the value of the home is less than the balance of the first priority loan).
Because a Chapter 13 plan is a commitment to pay a portion of your income to the Chapter 13 Trustee, based on a fairly lean budget for your living expenses, Scott will carefully review your debts and your budget with you in order to determine whether Chapter 13 is appropriate and whether other options, such as Chapter 7 or an Individual Chapter 11, are available to you.
We offer initial consultations at no cost to you, and Scott is also available to discuss your situation by phone. Please contact us to schedule a meeting or to discuss your situation.