avoid Chapter 13 explained options
what is bankruptcy
Bankruptcy Alternatives
  
Private Free Chat
  
   

 
 


Filing chapter 13 bankruptcy

The following is not financial, bankruptcy, legal or tax or any other type of advice or counseling. Please contact a professional in the appropriate field to review your SPECIFIC situation.

What is involved in a typical Chapter 13 bankruptcy.

Chapter 13 bankruptcy, sometimes called reorganization bankruptcy, is quite different from Chapter 7 bankruptcy. In a Chapter 7 bankruptcy, most of your debts are wiped away; which many consumers find attractive, however in return, you must give up any property that isn't exempt from seizure by your creditors. In a Chapter 13 bankruptcy, you don't have to hand over any property, but you must use your income to pay some or all of what you owe to your creditors over time -- from three to five years, depending on the size of your debts and income. This is why many people who do not qualify for a Chapter 7 bankruptcy look at Bankruptcy Alternatives as a better solution. You can get a free consultation to avoid bankruptcy here

Chapter 13 Eligibility

Chapter 13 bankruptcy is not for everyone. Since Chapter 13 requires you to use your income to repay some or all of your debt, you'll have to prove to the court that you can afford to meet your payment obligations. If your income is irregular meaning its too low, the court might not allow you to file for Chapter 13.

If your total debt burden is too high, you are also not eligible. Your secured debts cannot exceed $1,010,650, (over a million) and your unsecured debts cannot be more than $336,900. A "secured debt" is one that gives a creditor the right to take a specific item of property (such as your house or car) if you don't pay the debt. An "unsecured debt" (such as a credit card or medical bill) doesn't give the creditor this right. This is also one of the main reasons a bankruptcy alternative program is effective. Credit card companies may not recover money due to them if a consumer files bankruptcy.

The Chapter 13 Process

Before you can file for bankruptcy, you must receive credit counseling from an agency approved by the United States Trustee's office. These agencies are allowed to charge a fee for their services, but they must provide counseling for free or at reduced rates if you cannot afford to pay.

In addition, you'll have to pay the filing fee, which is currently $274 Dollars U.S, and file numerous forms. This can take a great deal of time, cost and supervision from your lawyer.

A Chapter 13 Repayment Plan

The most important part of your Chapter 13 paperwork will be a repayment plan. Your repayment plan will describe in detail how you will pay off your debts, and more importantly how MUCH you will have to pay. There is no official form for the plan as each court has their own version.

How Much Will I Have to Pay Off in A Chapter 13?

Your Chapter 13 plan must pay some debts in full. These debts are called "priority debts," because they're considered sufficiently important to jump up to the front of the bankruptcy repayment line. Priority debts normally include child support and alimony, wages you owe to employees, and some tax obligations.

In addition, your plan must include your regular payments on secured debts, such as a car loan, boat loan, or mortgage, as well as repayment of any arrearages on the debts. An arrearage is the amount of money that you have fallen behind in your payments to creditors.

The plan must show that any disposable income you have left after making these required payments will go towards repaying your unsecured debts, such as credit card or medical bills. You don't have to repay these debts in full (or at all, in some cases). You just have to show that you are putting any remaining income towards their repayment. Again companies you have unsecured debts with are most likely last in line to recover their debts. This means they could lose everything that you owe to them, or at minimum you will have to pay them off over the next 3-5 years. They often like to work outside of court to reduce your debt and recover a portion of it quickly. This provides you a way to get out debt without a bankruptcy and them a way to recover a small portion of what they deserve easily. Get a debt reduction quote here

How Long Your Repayment Plan Will Last

The length of your repayment plan depends on how much you earn and naturally how much you owe. If your average monthly income over the six months prior to the date you filed for bankruptcy is more than the median income for your state, you'll have to propose a five-year plan. If your income is lower than the median, you may propose a three-year plan.

No matter how much you earn, your plan will end if you repay all of your debts in full, even if you have not yet reached the three- or five-year mark.

If You Can’t Make Plan Payments

If for some reason you cannot finish a Chapter 13 repayment plan.
For Example you lose your job a few months after starting the plan and can’t keep up the payments the bankruptcy trustee may modify your plan, or the court might let you discharge your debts on the basis of hardship.

If the bankruptcy court won’t let you modify your plan or give you a hardship discharge, you might be able to convert to a Chapter 7 bankruptcy or ask the bankruptcy court to dismiss your Chapter 13 bankruptcy case (you would still owe your debts, plus any interest creditors did not charge while your Chapter 13 case was pending).

 

I Don't Want to Give Up and File Chapter 13 Bankruptcy!

If you would rather avoid the stigma, cost and stress of a Chapter 13 bankruptcy but you need to eliminate a large amount of debt you do have a legal and effective option.

A Professional Debt Negotiation Team Could:

  • Reduce Your Debts By Up to 50% or more*
  • Eliminate the Debts within 12-36 months.
  • Reduce your monthly expenses by up to half.
  • Create a monthly budget you can afford to get out of debt.
  • You don't need a loan, to be a home owner of even have good credit.
  • You only need to take a couple minutes to see if your financial situation and debts can qualify. Which is FREE.

Read all about Debt Negotiation Here:

OR

GET A FREE, LIVE CONSULTATION

Submit the request below to get a free, FULL consultation from a professional debt relief provider. Each consultation gives you answers you can act on:

  • Full session for you to ask all your questions.
  • Costs of debt relief programs.
  • Impact of debt relief programs.
  • If your qualified for a debt relief program.
  • Amount your debts could be reduced by.
  • When you will be debt free.
  • Much more..

There is no obligation to use any debt relief solution that might be suggested. If you need time to think, or don't like any solution simply thank your counselor and say goodbye. There is absolutely no cost.

alternatives debt avoiding
relief

Avoid Bankrupty in 2 Steps -  Consultation Request

Credit Card Debt

Other Unsecured Debt

Secured Debts

# of credit cards
Private

Free Service to Help You Assess Your Options!

options
assistance help services

 

 dot
 
 
title
Alternatives
  Alternative to Bankruptcy
Alternatives
  Effects Of Bankruptcy
Alternatives

 About Our Service
 
 I Want To
Alternatives
  Avoid Chapter 13
Alternatives
  Avoid Chapter 11
Alternatives
  Avoid Chapter 7
Alternatives
  Reduce Medical Bills
Alternatives
  Prevent a Foreclosure
   
Bankruptcy Questions
Alternatives
 Filing Chapter 13 Bankruptcy
Alternatives
 Filing Chapter 11 Bankruptcy
Alternatives
 Filing Chapter 7 Bankruptcy
Alternatives
 Bankruptcy and Credit Scores
Alternatives
 Bankruptcy and Divorce
Alternatives
 Bankruptcy and Your Home
Alternatives
 Bankruptcy and Your Job
Alternatives
 Cost to File Bankruptcy
 
   
  Bookmark and Share  
 

Want answers now?

  Live chat by LivePerson

 


filing
choices Alternatives to Bankruptcy filling

 

We are Not offering a Government based or backed Bailout Program.

Chapter 7 11 13 is a referal service that puts you in touch with companies offering services you are interested in receiving quotes and consultations from. Chapter 7 11 13 is not an end provider of debt relief services nor are we part of any agreementor contract of services you may commit to with a debt relief company.

The content provided on Chapter-7-11-13.net is a general description of services. Actual benefits, costs and features of services will vary from company to company. It is up to you, the consumer to consult with the service provider and any professional you deem appropriate to educate yourself on all the details of their program before making any decision.

By completing a form on this website you are requesting a service to contact you, in most cases by telephone, regardless of your status on the do not call list (DNC). Forms on this website are for information requests only, mainly for quotes, they are never an application or pre-qualification for services. Chapter 7 11 13 evaluates carefully the service providers we put you in touch with, however we do not endorse nor are we responsible for the actions taken or services provided by any particular company that may be found by using the Chapter-7-11-13.net website.

Chapter 7 11 13 is not providing legal, financial, investing or any other professional advice. Although we believe the content on this website to be acurrate it is general in nature and does not fully describe the complex details of every debt situation or program you may decide to use. It is recommended that you always contact a professional in the appropriate field for advice before making any decision.

In no case should you, the visitor, believe that there is any gaurantee that a you will not have to file bankruptcy now or in the future. This type of claim is not possible since bankruptcy is YOUR decision. * Up to 60% Debt reductions shown are real examples of some of the higher potential debt reductions possible. The debt negotiation industry averages about a 50% debt reduction, plus fees for their service, your results will vary. Chapter 7 11 13 is not the end provider of debt relief service thus we do not gaurantee any debt reduction amount, this will be estimated by the debt relief company you choose to use.

Important Issues to Consider when Evaluating Debt Settlement or Negotiation Programs

Consumers should not use a debt settlement service if they are able to pay their minimum balances due each month. Nor should the join if they do not have a legitmate financial hardship.

1) late fees, penalties, and interest will continue to accrue on the consumer’s debt until the consumer’s creditors accept and receive a settlement; (2) a consumer’s creditors may still sue to collect on the debts and garnish the consumer’s wages; (3) interest rates applicable to the consumer’s debt may increase; (4) any money a consumer saves in negotiating a settlement with a creditor must be treated as income for tax purposes; and (5) a debt settled for less than the full amount owed may result in a negative notation on the consumer’s credit report.

Chapter 7 11 13. is not acting as a lender or broker. The information provided by you to Chapter 7 11 13 is not an application for a mortgage loan, nor is it used to pre-qualify you with any lender. If you are contacted by a lender or broker advertising within our network, your quoted rate may be higher, depending on your property's location, your credit score, your loan-to-value ratio, debt-to-income ratio, and other factors.

Debt relief services may not be available in all states. It is your responsibility to confirm the debt relief service you choose is able to do business in your state.

Chapter-7-11-13.net is not liable for any loss resulting from a business relationship formed by you the consumer and an end service provider found using the chapter7-11-13.net website.

 

 

 

 

Chapter 7 bankruptcy | Chapter 13 bankruptcy | Chapter 11 bankruptcy