Charlotte Bankruptcy Attorneys
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is sometimes called reorganization bankruptcy, and is quite different from Chapter 7 bankruptcy. While Chapter 7 bankruptcy wipes out most of your debts, Chapter 13 bankruptcy uses your income to pay some or all of what you owe to your creditors over a period of time, from three to five years, depending on your income and debts. In Chapter 13 bankruptcy, you enter into a repayment plan to discharge your debts. Hiring an attorney skilled in Chapter 13 bankruptcy is in your best interests to thread through these complex legal issues.
Bankruptcy Eligibility
To file for Chapter 13 bankruptcy, you will need an income in order to prove to the court that you can afford to meet your payment obligations. If your income is irregular or too low, the court might not allow you to file for Chapter 13. If your total debt burden is too high, you will also be found ineligible. Depending on how you file, your secured debts and unsecured debts cannot exceed certain dollar amounts. A "secured debt" gives a creditor the right to take a specific item of property (such as your car or your home) 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.
The Chapter 13 Repayment Plan
The most important part of your Chapter 13 bankruptcy is the repayment plan. This plan describes in detail how, and how much, you will pay each of your debts. Once you complete your repayment plan, all remaining debts that are eligible for discharge will be wiped out. Before you can receive a discharge, you must show the court that you are current on any child support and/or alimony obligations you may have and that you have completed a budget counseling course with an agency approved by the United States Trustee.
We are here to help
Charlotte, North Carolina attorney Lee Schwilm has filed thousands of Chapter 13 and chapter 7 cases. Please call us to see if you and your bankruptcy case can benefit from our experience with Chapter 13 Bankruptcy Law. Contact us at Schwilm Law Firm, 6407 Idlewild Road, Suite 115, Charlotte, NC 28212 . Phone: 704-567-5252
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