Chapter 13 Bankruptcy is a good option to consider if you are behind on your home mortgage or car payments and you want to keep them or reduce the terms of your loan agreement. Chapter 13 bankruptcy is essentially a debt repayment plan where you pay back a percentage or all of your debts over three to five years depending on your income and equity within the assets. During the 3-5 years of your debt repayment plan you are allowed to keep your assets as long as you are able to continue making the regular payments. Further, the debt repayment plan must include payment of all principal, interest, and penalties on secured debt, and all unsecured debt will be given a pro-rata proportional payment which could be as low as zero depending on budgeted necessary and reasonable living expenses.
Like Chapter 7, when the Chapter 13 plan is in effect, creditors are required to stop collection calls, letters, lawsuits, repossessions, foreclosure, and garnishments.
Integrity Law, PC can help you determine whether Chapter 13 is right for you.
Bankruptcy provides a fresh start to individuals and their families and provides the "automatic stay" which halts collection activities from the time of bankruptcy filing. Before filing, one needs to complete a credit counseling course among other prerequisites. At Integrity Law, you get a Utah Bankruptcy Lawyer that can help you with your Chapter 7 & Chapter 13 bankruptcy needs that will get you on your path to financial sold ground.
Chapter 7 Bankruptcy is a good option to consider if you are up to date on your mortgage and any cars you would like to keep and have uncontrollable credit card or medical debts. Mortgages and cars are secured debt (creditor can foreclosure repossess if not paid) whereas credit card debt and medial debts are unsecured (not connected to any property so creditor cannot foreclose or repossess).
Chapter 7 Bankruptcy eliminates most unsecured debt, including credit card debt, personal loans and one can reaffirm secured debts (house, cars) that one desires to keep.
After filing a petition for bankruptcy, the automatic stay (creditors are required to stop collection calls, letters, lawsuits, repossessions, foreclosure and garnishments.
Integrity Law Utah bankruptcy attorneys can help you determine whether a chapter 7 bankruptcy is in your best interest.
(a)A debt relief agency providing bankruptcy assistance to an assisted person shall provide—
(1)the written notice required under section 342(b)(1); and
(2)to the extent not covered in the written notice described in paragraph (1), and not later than 3 business days after the first date on which a debt relief agency first offers to provide any bankruptcy assistance services to an assisted person, a clear and conspicuous written notice advising assisted persons that—
(A)all information that the assisted person is required to provide with a petition and thereafter during a case under this title is required to be complete, accurate, and truthful;
(B)all assets and all liabilities are required to be completely and accurately disclosed in the documents filed to commence the case, and the replacement value of each asset as defined in section 506 must be stated in those documents where requested after reasonable inquiry to establish such value;
(C)current monthly income, the amounts specified in section 707(b)(2), and, in a case under chapter 13 of this title, disposable income (determined in accordance with section 707(b)(2)), are required to be stated after reasonable inquiry; and
(D)information that an assisted person provides during their case may be audited pursuant to this title, and that failure to provide such information may result in dismissal of the case under this title or other sanction, including a criminal sanction.
(b)A debt relief agency providing bankruptcy assistance to an assisted person shall provide each assisted person at the same time as the notices required under subsection (a)(1) the following statement, to the extent applicable, or one substantially similar. The statement shall be clear and conspicuous and shall be in a single document separate from other documents or notices provided to the assisted person:
“IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.
“If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire anyone.
“The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, many cases are routine.
“Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called a Petition, Schedules, and Statement of Financial Affairs, and in some cases a Statement of Intention, need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will have to attend the required first meeting of creditors where you may be questioned by a court official called a ‘trustee’ and by creditors.
“If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts.
“If you choose to file a chapter 13 case in which you repay your creditors what you can afford over 3 to 5 years, you may also want help with preparing your chapter 13 plan and with the confirmation hearing on your plan which will be before a bankruptcy judge.
“If you select another type of relief under the Bankruptcy Code other than chapter 7 or chapter 13, you will want to find out what should be done from someone familiar with that type of relief.
“Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy petition preparers, can give you legal advice.”.