PO Box 355, Hartland, MI 48353, US
(248) 882-0838 Text Now Free Phone Consultation
Understanding Chapter 13 Bankruptcy
Chapter 13 is Reorganization
A chapter 13 reorganization is a 3 to 5 year bankruptcy. Generally, you pay a percentage of your unsecured debt back. A chapter 13 is 11 U.S.C. 1300 of the Untied State Bankruptcy Code.
What is the difference between a chapter 7 and a Chapter 13?
Ok, Here is the short answer. A chapter 13 bankruptcy is where you pay some of the debt back and a chapter 7 is where you pay nothing back. Or as I like to say, a 2 digit bankruptcy is a reorganization bankruptcy. That is the simple version. Of course what distinguishes a chapter 13 from say a chapter 11 or a chapter 12 is the 13 is a consumer reorganization. A chapter 11 is a corporation and a Chapter 12 is a farmer or fisherman. There is a broad range of option in a chapter 13. A chapter 7 is a liquidation bankruptcy. So if you have assets the chapter 13 reorganization is the way to go. Unless you don't care about your assets.
I hope that helps understand the chapter 7 vs chapter 13 .bankruptcy. Remember I am a chapter 13 bankruptcy attorney located in Hartland so I serve Brighton, Howell, White Lake charter Township
Reasons to File a Chapter 13 Bankruptcy
And you may be asking yourself why would I file a chapter 13 reorganization bankruptcy when I can file a chapter 7 bankruptcy. A chapter 7 gets rid of everything. that is a chapter 7 vs chapter 13 bankruptcy There are many reasons to file a chapter 13. here are a few reasons:
1. You are behind on your mortgage and you want to keep the house so you stop the foreclosure and catch your arrears up through the Chapter 13.
2. You can't qualify for a chapter 7 bankruptcy because you already had one in an 8 year period.
3. You have too much equity in your house or other assets.
4. Household income is too high under 11 U.S.C. 707. In other words you have means test issues.
5. You have high priority debts. IRS, State taxes, child support.
6. You are self employed and you don't want to use your Chapter 7 protection.
7. Cram down secured debt. Like a car or mobile home you can modify the principle and interest. Sometimes if you have a mobile home you can cram it down lower the payment and pay it off in 5 years.
Those are the basic reasons people chose to do a Chapter 13 bankruptcy over a chapter 7. So if you need a chapter 13 bankruptcy attorney call me. 810-632-9160 I am located in Hartland MI. I service all of southeast Michigan like Brighton Howell White Lake charter Township
How much does a chapter 13 cost
Chapter 13 cost a bit more then a chapter 7 but you are get years of service instead of 4 months. The general flat fee is $3500. But usually that can be spread out over time and paid directly into your chapter 13 plan.
How does a chapter 13 work?
A chapter 13 works like a chapter 7 process wise. The schedules, petitions, statement of financial affairs are filed and a Chapter 13 reorganization plan is also filed. About a month after you filed you will go to a 341 meeting of creditors. After that there will a Chapter 13 confirmation hearing to approve your plan. It does sound simple. But it can get complicated. There are many variables in confirming a chapter 13 plan. For instance, Chapter 13 trustee objections, IRS objections, creditor objections, values on listed properties. etc.
And that is an over simplified explanation of a Chapter 13 bankruptcy. But that is the nutshell.
Does the Law Office of Doug Dern do Chapter 13 bankruptcy?
Of course we do. We have been doing them for almost 20 years. 810-632-9160 call right now.