Chapter 13 Bankruptcy - Detailed Overview
Chapter 13 offers several advantages over chapter 7. Most significantly, a chapter 13 bankruptcy offers the opportunity to save your home from foreclosure. Upon filing, you can stop foreclosure proceedings and may cure delinquent mortgage payments over time. However, you must continue to make all mortgage payments that come due during the chapter 13 bankruptcy on time. Chapter 13 bankruptcy allows one to reschedule payments, which will be lower and more manageable for you. Finally, you will make the plan payments to a chapter 13 trustee who then distributes payments to creditors. You will have no direct contact with creditors while in a chapter 13 bankruptcy.
Anyone is eligible for chapter 13 relief as long as the individual's unsecured debts are less than $336,900 and secured debts are less than $1,010,650. 11 U.S.C. § 109(e). A corporation or partnership may not be a chapter 13 debtor. Id.
You cannot file a chapter 13 or any other chapter, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e). In addition, no individual may be a debtor under chapter 13 bankruptcy or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111.
For more information, please call us at 770-621-2622!!!
Anyone is eligible for chapter 13 relief as long as the individual's unsecured debts are less than $336,900 and secured debts are less than $1,010,650. 11 U.S.C. § 109(e). A corporation or partnership may not be a chapter 13 debtor. Id.
You cannot file a chapter 13 or any other chapter, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e). In addition, no individual may be a debtor under chapter 13 bankruptcy or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111.
For more information, please call us at 770-621-2622!!!