Read the explanation of Chapter 13 Bankruptcy.
If your debts are getting out of your control but your income is still more than the median of the state and you have been living in the same state for the past two years, you can still file for bankruptcy. A Chapter 13 bankruptcy was put in place for those who still have some “disposable” income. Even after paying all their expenses. And/or for those who’d like to keep the property that they would otherwise lose if they filed for Chapter 7. Completion of a form is a must. Its purpose is to determine if the amount of “disposable” income is equal to or less than the median of the state. Then, how much is actually left, and whether a 3-year plan or a 5-year plan will be implemented.
Once a timeline plan has been chosen, a repayment plan is then hatched. To construct a repayment plan, you must show that you can stay on top of your secured debts; such as a mortgage, car note, or domestic support obligation. All the while you are still paying off your unsecured debtors. You are paying the value of the properties that you would have otherwise had lost in a chapter 7 bankruptcy case. You must also be up to date with all of your tax filings. If you are not current with your tax filings, you must first complete that before continuing to file bankruptcy. When the proposed repayment plan has been accepted, a bankruptcy judge will then confirm it. And, it is now up to you to follow through with the plan.
If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
