Those needing to file for bankruptcy have two options available – Chapter 7 and Chapter 13. Essentially, Chapter 13 is a section of the Bankruptcy Code allowing qualified individuals and small business owners to hold onto their assets and consolidate all or some of their debt. Once approved, you will pay back your debt or a portion of the debts on a monthly payment plan payable over three to five years. Those considering filing for bankruptcy should consult with a personal bankruptcy attorney Ogden to learn more about their options.
Who is Eligible to File for Chapter 13 Bankruptcy?
Those with unsecured debt of less than $394,725 and less than $1,184,200 in secured debt can file for bankruptcy. Additionally, those ineligible to file Chapter 7 may qualify for Chapter 13. There is no set maximum income limit to file Chapter 13 bankruptcy. Upon filing, debtors must take a credit counseling course. An Ogden bankruptcy attorney can help determine if you can file Chapter 13 bankruptcy.
What Does Chapter 13 Bankruptcy Cover?
Essentially, Chapter 13 bankruptcy is a reorganization of debts and discharges remaining debt after completing a three to a five-year repayment plan. Chapter 13 covers most secured and unsecured debts, such as loans and credit cards. It does not cover alimony, child support, or most student loans. It can stop repossession and foreclosure proceedings on vehicles and homes, which you can keep, but still have to continue making payments if you plan to keep these items.
What are the Benefits of Chapter 13 Bankruptcy?
Chapter 13 has many benefits, including condensing all bills into one, easy-to-make monthly payment. Additionally, you can keep your home and vehicle and recover from missed payments throughout the repayment plan. You can pay for non-covered debts without penalty. Once complete, you have a clean slate and can rebuild your credit.
How Can an Attorney Help Me File Chapter 13 Bankruptcy?
Your chapter 13 bankruptcy attorney Ogden, can help you gather everything needed to file Chapter 13 bankruptcy, including proof of income, debt, and assets. Additionally, they prepare all necessary paperwork, help develop an affordable repayment plan, and file it with the courts. Your attorney will also be present with you during your hearing with the trustee.
For additional information about Chapter 13 Bankruptcy in Utah, call Mountain View Law Group to schedule an initial consultation.
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