Chapter 13 in Kent

If you are behind on a mortgage, have unpaid traffic or parking tickets, a high debt to the IRS, vulnerable property that you want to keep or have a higher than average income but still cannot keep up with your debt, a Chapter 13 may be the best solution to your financial problems. Unlike a Chapter 7, a Chapter 13 plan restructures your debt and allows you to pay a portion of it over time with your income. It offers certainty and deals with all kinds of debt unlike the numerous debt consolidation schemes you see advertised on TV.

Though Chapter 13 requires you to make a monthly payment to a trustee and the plan lasts three to five years, it is a powerful tool for dealing with some more complicated debt problems. If you have assets that, even with bankruptcy’s generous exemptions you are not able to keep, you can avoid having them liquidated in Chapter 7 by paying your creditors over time instead. Our Kent Chapter 13 bankruptcy lawyers will help you determine if you might have assets that would be at risk if you try to file a Chapter 7 bankruptcy.

If you are behind on a mortgage and facing foreclosure, you can make monthly payments to get caught up slowly rather than having to pay the entire default all at once. You can restructure a car loan and combine it with the rest of your debt. You can set up a plan to pay the IRS or back child support before credit cards and pay pennies on the dollar on credit card debt if that is all you can afford to pay.

Overall, a Chapter 13 bankruptcy offers more tools and flexibility than a Chapter 7 or non-bankruptcy consolidation plan. The whole time you are in Chapter 13, you are protected from your creditors by bankruptcy’s powerful “automatic stay”. When you are finished with your plan, you have a discharge issued by the federal courts that no creditor can argue with so you know you are finally back on track.

A Chapter 13 discharge wipes out debt like a Chapter 7 discharge but more types of debts can be discharged in a Chapter 13. The only way to determine whether your specific debts can be wiped out in a Chapter 13 bankruptcy is to meet with an experienced Kent Chapter 13 bankruptcy attorney. If you have questions about whether or not Chapter 13 bankruptcy is right for you and your family, we invited you to call our offices for a free initial consultation. One of our Kent bankruptcy lawyers will be happy to review your income, your debts, and your assets, and the provide you a detailed explanation of your debt relief options.

A Chapter 13 case starts by filing a petition, related documents and a plan with the bankruptcy court. Immediately all debt collection stops. In a month, you attend a hearing with the trustee who is appointed to administer your case. Your attorney appears with you and helps you with any issues brought up.

The trustee will examine your plan and come up with an opinion of whether the plan is fair to you and your creditors. The trustee and creditors can object to the plan and you and your attorney can negotiate with them or dispute their objections in court.

The final decisions are made by a bankruptcy judge, who will confirm the plan. After the plan is confirmed, it is like a legal judgment that can not be challenged later. At that point you know what the next three to five years will look like and when you will finally exit bankruptcy, though it is possible to pay off the plan early if you are somehow able to do so.

Chapter 13 bankruptcy is an incredibly powerful financial tool that was specifically enacted to help good people who have fallen on difficult financial times, in many situations through no fault of their own. Our Kent Chapter 13 bankruptcy and debt relief lawyers want you to know that you have very critical legal rights when it comes to crushing debt. Let our bankruptcy attorneys help you determine if Chapter 13 relief is the right move for you and your family.