Chapter 13 – What to Expect
This proceeding is used by individuals who want to become current on past due mortgage or car loan payment and retain all their assets while restructuring their payments to creditors, even where creditors have initiated collection, court action, repossession and/or foreclosure. Often their payment each month can be significantly lower than currently exits.
Chapter 13 involves a detailed review by a Chapter 13 Trustee on the feasibility of the proposed Plan of reorganization. The Trustee must be satisfied your Plan meets with the legal requirements of the U.S. Bankruptcy Code, will pay the anticipated creditor claims, and that you will have the ability to complete the Plan.
To prepare for your Chapter 13 we will perform an analysis of your financial affairs, including but not limited to your debts, your property interests, your current and future income, and your current and future living expenses.
Your debts will be classified as either secured, priority or unsecured classes. A reorganization Plan will be prepared, based on your income and living expenses, and your ability to pay.
Chapter 13 will allow you to maintain an acceptable standard of living while you meet your responsibilities under your Chapter 13 plan. If this is not possible, then we will advise you of other alternatives, including Chapter 7 Bankruptcy. Chapter 13 Plans lasts for up to a 60 month repayment period.
After your case is filed, you will be have to attend a Creditors Meeting. We will prepare you and attend this Meeting with you. If neither the Chapter 13 Trustee nor any creditor opposes your Chapter 13 Plan, it will be recommended by the Trustee for confirmation. If opposed, the Judge will consider and rule on the objection.
Remember that you have to make payments on your Chapter 13 Plan 30 days after the filing of your case.
Once your Plan is confirmed by the Court no other court appearances are necessary as long as monthly payments are made. We will advise you until all the payments pursuant to the plans are made.