Chapter 13 Bankruptcy

BankruptcyAt the law office of Cravens & Noll, our attorneys work closely with clients in preparing and filing Chapter 13 bankruptcies. As in Chapter 7, there are certain state and federal exemptions you can claim that allow you to protect more of what you own.

Chapter 13 bankruptcy allows you to reorganize debt on credit cards, medical bills, certain loans, past-due mortgage payments, and some unsecured debt. Under the terms of Chapter 13 bankruptcy, you may only be required to pay back 5 to 10 percent of your unsecured debt over a 3 to 5 year period. By filing for Chapter 13, an accurate assessment of your debt and monthly disposal income must be taken into account when proposing a repayment plan for approval by the court.

While creditors will have an opportunity to ask you questions or challenge your repayment plan, once a bankruptcy judge approves its terms there is little creditors or banks can do.

Avoiding Foreclosure through Chapter 13 Bankruptcy:

The majority of people who file for Chapter 13 bankruptcy are able to keep their homes. Because Chapter 13 allows you to restructure your unsecured debt, you can combine multiple debts into a single manageable monthly payment. As a result, people often have enough money left over to pay their monthly mortgage. Additionally, while you can’t discharge your mortgage debt through Chapter 13, you can include past due mortgage payments in your debt restructuring plan. This will allow you to avoid late charges and bring your account current.

Your Repayment Plan – the 341 Meeting:

Once you submit your repayment plan, you are required to attend a meeting with your creditors. Referred to as the “341 meeting” after the bankruptcy code section that requires it, your creditors will be given an opportunity to ask you questions under oath. Our attorneys will accompany you to the 341 meeting in order to counsel and advise you should the need arise. Typically, very few if any creditors appear at the 341 meeting. However, occasionally a creditor may want to question you regarding the terms of your plan or specifics regarding your current financial situation. We can advise you and ensure your rights and interests are protected.