Chapter 13 Bankruptcy: Eight Important Facts

Are you struggling with debt? Filing for bankruptcy may help you get your finances back on track! Chapter 13 will allow you to establish a plan to pay off your debts over a period of 3 to 5 years. Another benefit of this chapter is that it may lower your monthly payments. Here are 8 important facts about Chapter 13.

Will I Lose my House if I File for Bankruptcy?

Do you want to avoid losing your precious home? If you own a home, Chapter 13 will help you save it from foreclosure. However, if your mortgage provider ends up finishing the foreclosure sale before you file a petition, you may lose your house. You can also lose your house if you don’t make your mortgage payments that become due after you file for bankruptcy.


Will I Have to Attend any Meetings?

After you file a petition, your trustee will set up a meeting with you and your collectors.Your collectors and the trustee will talk with you at the meeting and ask questions about the plan and your financial situation.

Does my Plan Require Approval by the Court?

Your plan must be approved by the court. Within 45 days after the meeting, the judge will hold a hearing and decide whether your debt repayment plan meets the standards for confirmation set forth in the Bankruptcy Code. Keep in mind that your collectors will have a chance to object to the confirmation.

Where do I Send my Plan Playments?

This chapter acts like a debt consolidation loan under which a debtor makes the payments to a court appointed trustee. The trustee then distributes the payments to the debtor’s collectors. Within thirty days after filing for Chapter 13, you must begin sending payments to your trustee. You will have to make payments on a regular basis, usually bi-weekly or monthly.

What Happens if I Fail to Make my Plan Payments?

Make sure you make all the payments to your trustee. If you don’t make your plan payments, the judge may dismiss your case or convert it to a Chapter 7 case. The judge may also convert or dismiss your case if you don’t pay any domestic support obligations that are due after you file for bankruptcy such as alimony or child support.

Will Filing a Petition Stop Collection Actions?

Are your collectors harassing you? Filing under this chapter puts an end to most collection actions against you. After you file a petition, your collectors will not be able to empty your bank account, garnish your wages, initiate or continue lawsuits, or call you and demand money. If you file for this chapter, you will not have any direct contact with your collectors.

Find a Bankruptcy Attorney Today

Only you can decide if filing for Chapter 13 bankruptcy is worth it for you. If you decide to go for it, make sure you hire a qualified bankruptcy attorney. Bankruptcy is a complicated process. An experienced lawyer who knows the laws is absolutely necessary if you want to be successful!

When it comes to filing for Chapter 13 Austin residents may be confused, intimidated or even not know where to go. Fortunately, knowledgeable professionals exist in the area to help. Learn more at http://www.bankruptcyattorneyofaustin.com/.

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Bankruptcy Law: Chapters 7 & 11

The differences between Chapters 7 and 11 bankruptcy law are numerous. This is due mainly to the legal debt solution structure. Though Chapter 7 can be used by both businesses and consumers alike, it has become more difficult for individuals to file since the 2005 reform laws went into effect. Chapter 11 is used mainly by corporations as a restructuring procedure, and does not mean that the business in question has to dissolve, unlike businesses utilizing Chapter 7. In this article, we will walk you through the differences between Chapters 7 & 11.

Chapter 7 For Individuals...


Individuals interested in filing for Chapter 7, which works to alleviate virtually all debt, must meet the standards set forth in the reform laws of 2005. This is due to many individuals abusing the system. These days, individuals looking for a fresh start are required to make less than the average income for the state in which they reside. In addition, individuals will be require to seek credit counseling prior to the federal bankruptcy court accepting their paperwork. Because of this, many individual are being pushed to Chapter 13 programs, which works as a debt repayment, supervised by the court.

Chapter 7 For Businesses

Companies that are unable to pay off their debt are also allowed to file for Chapter 7, though, they remain unaffected by the 2005 reformation. Any assets from the business are sold off to creditor losses, essentially putting an end to that particular company. In some cases, a trustee is able to sell assets from the company to other businesses as a way to minimize layoffs as a result of the filing.

Chapter 11

The vast majority of Chapter 11 filings are from corporations and businesses, however some instances may see that proprietor of the business doing the filing on their own. This option offers businesses the opportunity to restructure and repay their debts via a court-supervised program. Courts may decide that some contracts are unfair and make repayment unnecessary. Businesses who have file under Chapter 11 are not allowed to be listed on the public stock exchange. In most cases, companies who decide to file will eventually collapse.

Reform Effects

As stated above, the 2005 reform did not affect businesses. This has caused quite a bit of controversy, especially following the Enron Corporation case in early 2001. A great deal of individuals lost retirement accounts and fraud suspicions were abundant. Many critics have stated that the courts should have chosen to pay more attention to shady business practices than individuals going through a rough patch. But at least for now, it stands that individuals hoping to declare will have to undergo a bit more debate and hassle during the filing process than corporations.

If you are interested in learning more about the debt relief area, the best place to turn is the office of an experienced attorney who specializes in bankruptcy law. He or she will be able to evaluate your individual situation and offer up advice on how best to deal with it.

When it comes to bankruptcy law Kansas City attorneys have helped countless local residents eliminate their debt and relieve constant creditor calls. Find out more at http://www.lawinkc.com/.

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A Bankruptcy Attorney Will Protect Your Interests

A bankruptcy attorney has the knowledge you need to help guide you through the process. They are not there to judge you for your previous actions, but will provide you with the skills you will need for proper representation. They know that this could happen to anyone if they experience an emergency that would necessitate being out of work with no income. They know how to handle the creditors and what can be done to stop them from harassing you. If you are riddled with large debt without a way to pay it off, this may be the best solution for you.

A bankruptcy attorney will invite you into his office for a free consultation. This is the time you can ask about any concerns and the lawyer will have a list of questions for you as well. He will take the answers that you give and decide what would be best for your situation. They will see to it that the proper paperwork gets filed as soon as possible to expedite your case and begin to protect your interests. No one really looks forward to dealing with debt or a possible bankruptcy. A lawyer will have the skills to be successful with the process.


Because the information you will be giving is so sensitive in nature, you will want to find a bankruptcy attorney that you will feel comfortable talking about all of these details. It is difficult to relive and rehash situations that make you feel uncomfortable. Maybe you made mistakes and are the reason for the money troubles. It doesn't really matter, your lawyer is there to help you get out. This is what he is paid to do. He will file all of your paperwork and save you from embarrassment.

It is a rude awakening to figure out that even if you were to stop spending money, you can not afford to pay for the existing bills that you have accumulated. The lawyer is skilled to help people just like you who mean to pay your bills but let them get out of control and may not even know how. The lawyer stays on top of the laws and is familiar when their is a change in any of them. This is why it is so important to find one who specializes in bankruptcy

Many people have recently found themselves in the situation with large bills pending and no cash on hand to pay them. This becomes an impossible situation if there will be no cash on hand in the future that is enough to pay them off. Many people got stuck when they purchased an expensive home and the housing market plummeted. They also found themselves without a job with no way to even make a proper attempt to pay the household bills. A good lawyer will help guide you through the process with respect and compassion.

If you are experiencing crushing debt and are considering filing for relief, a qualified Tampa bankruptcy attorney can provide sage advice to get you through this difficult time. Find out more at http://www.bankruptcylawyerintampa.com/.

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Might Medical Debts Be Included In Personal Bankruptcy?

After having suffered with an injury or illness, you might find yourself staring at thousands of dollars in medical bills. Unfortunately, a lot of people in your situation end up filing bankruptcy because they are not able to keep up with payments on their health care bills and regular bills.

Sadly, at least for the health care providers, is usually that medical bills to health professionals and medical facilities are typically considered as unsecured debt and provided everything also included in an individual bankruptcy filing is precise, will generally be wiped clean in a Chapter Seven individual bankruptcy filing.

All those hoping to get out of debt that really feel a moral responsibility to pay medical providers have a couple of choices to pay their bills, like filing Chapter 13 personal bankruptcy, if they qualify. Although, when declaring bankruptcy all outstanding bills are required to be listed and will end up part of the individual bankruptcy.

All your creditors can file with the personal bankruptcy court to obtain a portion of assets sold as part of the bankruptcy. But, in a lot of cases the creditors for health-related expenses write off the total amount owed. Needless to say, medical providers can refuse to treat anyone who has filed bankruptcy including medical bills previously. Emergency service will often be available by unexpected emergency care providers to a sufferer when they have placed their bills in a bankruptcy proceeding, but they can refuse any non-urgent threatening products and services.


People qualifying for Chapter 13 personal bankruptcy will pay off all of their bills, which includes their medical debts by using a payment plan authorized by the bankruptcy court trustee. It may take 3 to 5 years to extinguish all the bills, according to the amount of the debt and the filer's income. Even so, doctors never mind waiting because they can be guaranteed they'll receive money.

Undoubtedly, many medical procedures of aesthetic nature will not be considered unsecured loans. This is the reason many medical providers do not accept payment options on specified procedures. Procedures done strictly for cosmetic purposes usually require payment in advance since there isn't something that can be reclaimed such as a motor vehicle or a home in order to have collateral on the loan.

If you have found yourself overwhelmed with a lot of money in medical bills and unable to make installments on them or your many other bills, contact a bankruptcy lawyer immediately. The longer you disregard your debt, the more burdensome it can become. Explore your financial options with a a bankruptcy lawyer to be certain bankruptcy is the proper answer for your problems and after that make a change to get yourself on the road to being free of debt. A personal bankruptcy legal representative can also assist you with all bankruptcy filing paperwork, if you choose to file Chapter 7 or Chapter 13.

The Seattle bankruptcy attorneys of Northwest Debt Relief Law Firm are committed to helping people throughout both Oregon and Washington get out of debt, including, where appropriate, filing petitions for relief in the United States Bankruptcy Courts. Regardless of the type of bankruptcy filing, Northwest Debt Relief Law Firm can help you get a fresh start and get your personal finances back on track.

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Is Bankruptcy The Right Choice For Debt Relief?

You may be in troubleshoot of any debt relief, financial assets, and any troubles just like silence debt collectors? Bankruptcy is actually a court-based technique which makes and gives you ‘fresh start” from financial and also other problems. Customers are discharged out of their individual liability via more debt reliefs. Bankruptcy attorney has made numerous legal guidelines concerning the concern you are facing and you'll find more information about this Bankruptcy from free discussion. You can get licensed bankruptcy attorneys in US simply by hunting within websites regarding bankruptcy.

Realize how a debt settlement lawyer makes help for many people through bankruptcy in coming from any kind of monetary problems. Depending on the place you stay bankruptcy lawyer changes.


1. What is debt relief order?

If you cannot manage to pay out any kind of financial debt like credit cards, medical bills and any kind of other electric bills, submitting for debt relief will help you significantly. Debt settlement order might take time to take action on people to obtain their money back from the debtors.

2. Who are able to try for a debt relief?

People who have higher amounts of financial debt can try for debt relief. You must have free income like wages or salary, any type of welfare features, pension upon retirement, assets to pay off your debts, resided and possess asset and business for past 3 to 4 years in one location.

3. Which kind of debts generally removed by filing bankruptcy?

•    Credit cards, loans, over drafts  

•    Council tax, telephone bills, rent, utilities

•    Community funds and benefit over-payments

•    Conditional sale contracts as well as employ purchase  

•    Buy now and spend later legal contract

4. How to try for debt settlement?

It might be applied by the third party or even an intermediary who's commonly referred to as debt manager presents approval in order to fill complete form and offers assistance for the debt settlement. You can get details in a number websites. You'll want to spend the payment to use, and official recipient will make your order with searching the presented facts. Presenting inappropriate information is felony when applying the debt relief.

5. Points not to be performed while deciding on debt relief through bankruptcy lawyer

Never mask or harm any kind of documents, books and generate any kind of fake papers until one year when using for debt relief. Do not intimate the official recipient for any alternation in your needs which usually impact your order being gave.

Selling and providing things of lower than the cost from the resources may well not help to grant the application. Certain guidelines are generally implemented such as not delivering incorrect information, being fraudulent, and so on. When these things are verified, you'll endure imprisonment or even fine.

6. What will happen over the Debt settlement period?

You need not pay the financial debt and also the loan creditors will not be likely to have any actions as the relief phase can last for 1 year. In case any adjustments occur in that stage, you have to tell to the official recipient.

7. What occurs right after finishing debt settlement attorney?

All of the financial debt will likely be written off in your order and need not settle them. Debts that are not placed in the order need to be paid.

Bankruptcy has many chapters for solving the problems with debt relief. Visiting a bankruptcy attorney will help you in discovering out better chapter that can help with your demands.

Fontana bankruptcy attorney can greatly help with your financial condition in relieving the debts. If you want more information about debt relief, you can set free consultation with our Fontana debt relief attorney.

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How Individual Bankruptcy Affects Your Emotions

The choice to file for bankruptcy can be a difficult one, with a lot of people feeling the affects of the preconception that came with bankruptcy in years past. Today, due to common nature of declaring bankruptcy in the wake of a challenging economy, the choice is becoming simpler to make. With several new rules set up on who can file, and the type of bankruptcy they are allowed to file, many are finding their lives back in their control when they do seek bankruptcy relief. Bankruptcy is allowing some people to navigate through these difficult financial times, far more gracefully.

Any financial decision can be quite personal, which is why it can be humiliating to file for personal bankruptcy in Oregon and Washington. This is specifically the case when they learn the filing will be advertised in the newspaper, as expected by law. However, the stigma long connected with bankruptcy has lessened during the past few years, as people have lost jobs or their house payment has skyrocketed. With medical and insurance fees rising rapidly, even medical costs could cause people to fall behind.

You'll find basically three emotions in play whenever a person files for bankruptcy, beginning with apprehension they will be considered someone who cannot pay their bills. This could be especially troubling for somebody who, until lately has always paid by the due date and never missed a payment at all. Frequently, the next feeling is of depression. Some become depressed, simply because see themselves as a failure in the regions of money handling and budgeting.


After they have made it through the first early stages and have been through the consumer bankruptcy procedure, they often feel a certain amount of relief. It could be liberating for them once they realize they no longer owe on any of their previous bills. These feelings can be dulled by lingering feelings of depression, but in many instances the lack of calls from bill collectors and threatening letters can collapse to permitting them to feel more relief knowing they made the best bankruptcy decision.

As soon as most have managed to make it through these emotive stages of bankruptcy, a feeling of determination often takes over as they identify they will never find themselves in the same position again. The financial responsibility measures they learn as they proceed through bankruptcy can help them budget and understand ways to hold the line on expenditures. This can help insure their financial balance later on.

When you can find yourself with no other option than to file for bankruptcy, it is necessary you understand that while the method may be humiliating, it will help you work toward a brighter financial future.

The Oregon personal bankruptcy attorneys of Northwest Debt Relief Law Firm are committed to helping people throughout both Oregon and Washington get out of debt, including, where appropriate, filing petitions for relief in the United States Bankruptcy Courts. Regardless of the type of bankruptcy filing, Northwest Debt Relief Law Firm can help you get a fresh start and get your personal finances back on track.

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What You Should Not Do Before Filing Bankruptcy

Filing bankruptcy is not a game at all. The bankruptcy courts follow the rules very seriously, and may file criminal charges if you try to do a bankruptcy fraud. Even if they do not go that much the court can decline to discharge the debt, or dismiss the case. Therefore, it is always good to plan a bankruptcy before you file it to get the finest possible result.  However, you must plan your bankruptcy keeping in mind the bankruptcy laws.

The best time to file bankruptcy is just after you have received your latest tax return. This way you can cash the return and put it away, or the bankruptcy court may garnish or take back the return to pay your creditors. You can also use those funds to pay your attorney, or pay other legal charges.

Firstly, do not lay money in your bank. You should not keep more than $99 in your checking account as the court can take hold of it in order to pay your creditors. If you are proceeding ideally, take your paychecks down to your local Walmart and cash them. Put your cash in a safe place in your home, and do not reveal it until your debts are discharged in a bankruptcy. However, you should make your attorney aware of the things you are doing.

You should be honest to the court, and disclose each detail to your attorney. Consult your attorney, and seek his opinion regarding what you should do to keep every bit of your money during the bankruptcy procedures, and can use them for survival after the process.


As you have determined to file bankruptcy, do not take out more loans, which will add more debt. The court may deem this abusive, and may reject your claim. If your creditor is trying to repossess your car, put it in your, close friend’, or relative’ garage to keep it out of the public eyes. This is really a hard nut to crack as the creditor has legal grounds to take your vehicle from your driveway, or if you have left it on the street. Once you file the bankruptcy, the creditor will not be able to grab it until the procedures are done. So try to keep these kind of assets is a safer place until you file for bankruptcy.

Don not transfer funds to a family member to pay off your debts prior to the bankruptcy. You do not know what debts you will pay, and what the court will order to pay. The most important thing is to consult an attorney to make sure you are not committing a bankruptcy scam. Some changes in the bankruptcy law that came into existence in the year 2005 brought about some unknown new guidelines to be followed. Know that every local attorney provide virtual assistance to file a bankruptcy. So before hiring one with your hard earned money, take advantage of this option as it is a nice place to get your questions answered, and find out the facts about bankruptcy.

Sandra Parker is associated with savedude.com as a financial writer. She writes personal finance and offers advice on such issues

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