Finding Relief From Financial Uncertainty With Chapter 13 Personal Bankruptcy

Chapter 13 bankruptcy is a debt reorganization and repayment plan that gives you breathing room to get caught up. Chapter 13 debt reorganization can reduce monthly payments on secured debts, such as cars, and can reduce or even eliminate payments on unsecured debt such as credit cards.

In Chapter 13, you can keep your car and your house, and pay your creditors what you can over a period of time, generally 36 and 60 months. Your bankruptcy lawyer, Attorney Robert H. Holber of Holber & Guilfoil, will work on your behalf to negotiate an acceptable repayment plan with your creditors.

Chapter 13 is an option for people who have declared bankruptcy before, as well as those who have sufficient income to repay at least some of their debts. Consider Chapter 13 bankruptcy if:

• You have a large amount of credit card debt and are able to make some payments but can never get caught up and cannot pay the minimums on all your cards
• You are behind on your mortgage payments
• You are behind on your car payments
• You owe money to the IRS and cannot pay it all

Your bankruptcy attorney will file bankruptcy for you under Chapter 13 of the U.S. Bankruptcy Code. The bankruptcy court judge will immediately stop all collection proceedings against you by your creditors. Your assets are now under the court's protection.

You will be asked to submit a list of all your creditors, even those you are still paying. Your bankruptcy lawyer will work with you to create a suggested repayment plan and a court-appointed trustee will then review your information and make adjustments to your proposed plan. The court then notifies your creditors. Your attorney may also have to get approval from your creditors to the plan.

The bankruptcy court trustee will collect payments from you and distribute the money to your creditors. The trustee will make sure that you have enough money to support yourself and your family, but your attorney may need to safeguard you against an overly aggressive repayment plan. Your debt repayment plan will run for 3-5 years, after which any remaining debts will be discharged.