Are you filing for bankruptcy and need help? Check out these 10 chapter 13 bankruptcy tips, then call our South Jersey lawyer to get started!
Chapter 13 Bankruptcy
In speaking to clients about Chapter 7 or Chapter 13 bankruptcy, they want to know how the Chapter 13 bankruptcy helps them. A Chapter 13 bankruptcy is generally for individuals who have debts that are not dischargeable, such as taxes, student loans, alimony or child support. It’s also for individuals who are having trouble managing their debt, but whose income is too high to file under a Chapter 7 bankruptcy. A Chapter 13 also helps to protect your home from foreclosure or from a share of sale. If you have any questions about whether a Chapter 7 or a Chapter 13 is right for you, please feel free to contact our office.
Why You Should File for Chapter 13 Bankruptcy
A common question we have from our South Jersey clients is, “Why should I choose Chapter 7 over a Chapter 13?” There are various reasons for that, one of them being maybe you’re income is too high in the Chapter 7 Means Test. Also, if you have unsecured debts that are not dischargeable, such as alimony, taxes or child support, or student loans, you would want to consider a Chapter 13. If you have any questions about whether a Chapter 7 or a Chapter 13 bankruptcy is right for you, please contact our office.
Choosing the Right Attorney for a Chapter 13 Bankruptcy
When filing for Chapter 13 bankruptcy in South Jersey, it’s important to make sure that you have the right attorney. You need to look for an attorney who is experienced in Chapter 13 as well as Chapter 7 bankruptcy, has a background in mortgage remodifications and has experience in foreclosures. If you have any questions about whether you should file for a Chapter 7 or a Chapter 13, please contact our office.
Chapter 13 Bankruptcy Timeline
I was talking to a Chapter 13 client the other day and they wanted to know right up front, “How long is this Chapter 13 bankruptcy plan going to take?” The answer is an emergency petition can be filed in about one to two hours, but under normal circumstances, it takes one to two weeks to complete the actual filing, and the plan will last three to five years. If you have any more questions about how this works, please contact our office.
Cost of a Chapter 13 Bankruptcy
Here in our South Jersey office, when clients come in, cost is often a major concern on their minds. They’re already having trouble paying their debts and they want to know, “How much is it going to cost me to file for Chapter 13 bankruptcy?” Generally, there’s a small upfront fee of $750 to $1,000, but the remaining balance can be wrapped into the Chapter 13 trustee repayment plan. If you have any questions about Chapter 13 costs and how it’s wrapped into your plan, or whether a Chapter 13 bankruptcy is right for you, please call our office.
Chapter 13 Bankruptcy Trustees
When talking to clients at our South Jersey office, they often want to know, “Who is this trustee? What do they do, and what part do they play in my bankruptcy plan?” The trustee is an individual who actually has the best interest of the creditors in mind. They will go over your assets, your debts, and your liabilities during your hearing. Creditors almost never show up to these hearings, but the trustee is there to make sure that everything is in order, and they will be the one who disperses your monthly payments. If you have any more questions about how Chapter 13 bankruptcy works, or what role the trustee will play, please feel free to contact our office.
Income Paid to the Chapter 13 Trustee
A common question we have from our clients in our South Jersey office is, “In Chapter 13 bankruptcy, how much of my paycheck am I required to use to pay back to my debt?” The answer is there’s no one-size-fits-all solution. Every case is different. We don’t know going into it how much will be going into that repayment plan. If you have any more questions, please contact our office.
Discharging Student Loan Debt
A question that sometimes comes up in our office with Chapter 13 clients is, “In New Jersey, am I able to put my student loans on my Chapter 13 bankruptcy?” The answer is, yes, that can be done, but the real question you need to be asking is if it’s a good idea for you to do that. Does it fit your situation? Does it benefit you? In some cases, it does not benefit you to put your student loans on your Chapter 13 bankruptcy. To determine if this is a good option for you, or to uncover what some of your other options may be, you do need to have a bankruptcy attorney look at your situation. If you have any questions, feel free to contact our office.
Paying Off Debts in Full
A common question we get from our Chapter 13 clients here in our South Jersey office is, “Am I required to pay back all my debts in full? After all, Chapter 13 is a repayment plan.” It depends on what kind of debt it is. Some debts you’re required by federal law to pay back in full, while other debts can be paid for at pennies on the dollar. If you have any questions about what must be paid in full or what will be paid for pennies on the dollar, or if Chapter 13 bankruptcy is right for you, please call our office.
Credit Card Debt in Your Chapter 13 Repayment Plan
Credit card debt is a big concern for a lot of our clients here in our South Jersey office, and they want to know, “If I file for Chapter 13 bankruptcy in South Jersey, will my credit cards be included in that debt?” The answer is, yes, they can be included in your debt. You will pay either pennies on the dollar or nothing at all, in some cases, for your credit cards. If you have any questions about how credit cards play into your Chapter 13 bankruptcy, please contact our office.
Are you or a loved one unable to pay your debts and have questions about these 10 Chapter 13 bankruptcy tips? Contact experienced South Jersey Chapter 13 bankruptcy attorney Andrew Carroll of All Jersey Bankruptcy today for a free consultation and case evaluation.
We are dedicated to giving you the answers that you need in order to make an informed decision about whether bankruptcy is the best decision option for you.
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