Chapter 13 Bankruptcy

Are You Facing Foreclosure or Struggling with Mounting Debts?

Chapter 13 bankruptcy puts an immediate stop to foreclosure and allows you to take up to 5 years to pay back your missed mortgage payments and other debts. In many cases, you can wipe out some or all of your credit card debt as well. Chapter 13 can be a good choice if you want to keep your home, cars and personal property, but you need time and better payment terms.

Bankruptcy Attorneys of Chattanooga Explain Chapter 13 Bankruptcy

At its core, Chapter 13 is a payment plan. In order to qualify for Chapter 13, you must have a regular source of income, preferably in the form of a steady paycheck. Your Clark & Washington attorney will evaluate your income and expenses and calculate a repayment plan that will meet the approval of the Chapter 13 trustee and your bankruptcy judge. Once this plan is in place, you will remain protected from all creditor action while you fund your repayment plan. Chapter 13 plans typically last five years. Chapter 13 can be a great financial tool to help you stop creditor actions that threaten your family and your way of life. The minute you file Chapter 13, a legal protection called the “automatic stay” comes into existence and, by law, all creditor action must stop. The types of creditor actions that must cease include:

Foreclosures
Repossessions
Wage garnishments
Harassing bill collector calls
Collection letters

The automatic stay protection remains in force until your case pays out or otherwise closes.

Wipe Out Credit Card Debt through Chapter 13 Bankruptcy

Like Chapter 7 claims, Chapter 13 also helps with credit card debt. Credit card debts are included in a consolidation plan and obligations for those debts are covered by the Chapter 13 repayment plan. Credit card lenders can no longer charge interest once your case has been processed. Lenders also receive a percentage of what they are owed through the case and are paid based on what you can afford at the time. When the Chapter 13 plan is completed, any remaining credit card debt is discharged.

If this sounds like a viable option for you, contact one of our experienced attorneys to find out more about Chapter 13 filing.

The chance to keep your home and other Chapter 13 benefits

A Chapter 13 bankruptcy in Atlanta petition benefits you if you have a steady income during the repayment period. It is also effective if you have a large amount of debt that cannot be discharged by Chapter 7 bankruptcy, such as:

Child support payments
Property taxes
Court-ordered fines and restitution
Income taxes for three prior years
Spousal support or alimony

Filing under Chapter 13 allows you to keep your property, whether a home or apartment, and avoid foreclosure or eviction. You can also avoid other penalties, such as wage garnishment.

Chapter 13 Costs

Unlike many of our competitors, Clark & Washington does not require any upfront attorney’s fees. In most cases, 100% of our legal fees are paid through your Chapter 13 repayment plan, administered by the Chapter 13 trustee. Your only upfront cost will be $78 fee that includes:

Credit reports from all three major bureaus, ensuring an accurate and comprehensive view of your credit history. (Note: The court charges a mandatory fee for adding additional creditors after filing.)
Pre- and post-filing mandatory credit counseling courses

Attorney fees for Chapter 13 cases are incorporated into your repayment plan and are tailored to your unique financial situation. The Chapter 13 trustee distributes your attorney’s fees monthly along with payments to other creditors.

We understand that financial situations can change during your Chapter 13 case. If you find you can no longer afford your plan payments, your Clark & Washington attorney will work with you to modify your plan or, if necessary, convert your case to Chapter 7 bankruptcy to help wipe out your debts. Throughout the entire process, your Clark & Washington lawyer will support and guide you every step of the way.

Contact us for a free initial consultation about debt modification and Chapter 13 bankruptcy in Atlanta

If you have a steady income but are afraid of losing your home, or you have other kinds of debt, such as student loan debt, that Chapter 7 doesn’t discharge, you might consider filing for Chapter 13 bankruptcy.

Clark & Washington, Attorneys at Law provides clients with guidance and support through court-ordered debt repayment. To learn more about the risks and benefits of filing Chapter 13, call us at 770-488-9300 or schedule online for your free initial consultation.

If this sounds like a viable option for you, contact one of our experienced attorneys to find out more about Chapter 13 filing.

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Considering bankruptcy? Our experienced lawyers offer transparent advice tailored to your specific needs. Start your journey toward financial relief with a free, confidential consultation. Connect with us today to see how we can help.