Across the country, Courts are seeing more and more debt-collection cases flood the courtrooms. Most of the cases involve credit card collections, foreclosures, or evictions. This proverbial debt collection crisis is the result of the economic crash that occurred in 2008, which caused housing values to plummet and major lenders to shut their doors. In turn, this debt collection crisis has translated into more and more people filing for bankruptcy which includes both Chapter 7 bankruptcy and Chapter 11 bankruptcy. As a result, the way debt collection agencies and debt collection lawyers practice has changed significantly. This article will address the issues that face the creditor in a bankruptcy and its impact on debt collection.

What happens if the debtor files for bankruptcy?

One of the most powerful features, and consequently one of the main reasons people pursue a bankruptcy to discharge their debt it, is that bankruptcy stops creditors from pursuing you for debt collection. Once filed, most collection activity must cease and go through the bankruptcy court. It goes without saying then that once a debtor files for bankruptcy you should consult with an experienced attorney to determine whether the debtor is eligible for bankruptcy relief. Your bankruptcy attorney should be familiar with the rules regarding Chapter 7 bankruptcy and Chapter 13 bankruptcy, or even Chapter 11 bankruptcy if the bankruptcy debtor wants to remain in bankruptcy because the debtors’ income exceeds the means test.

After the debtor files for bankruptcy an automatic stay goes into effect. The automatic stay prohibits bankruptcy creditors from taking any action to collect on the debt the bankruptcy debtor owes to the creditor. Again, there are a few exceptions to what kind of debt is discharged in a Chapter 7 bankruptcy and Chapter 13 bankruptcy, and the creditor should consult with an experienced bankruptcy attorney to determine whether debt collection can proceed. Once the bankruptcy creditor receive notice that the debtor has filed for bankruptcy, a lawyer experienced with debt collection and personal bankruptcy law will analyze the case and determine whether you can object to the debtors bankruptcy and file a motion to lift the automatic stay.

Whether a bankruptcy automatic stay can be put in place by the bankruptcy creditor depends on the type of bankruptcy that the bankruptcy debtor has filed. Since a Chapter 13 Bankruptcy is more favorable to a bankruptcy creditor, most debtors attempt to pursue filing a bankruptcy through Chapter 7. If this happens, all is not lost, as in certain instances a case initially filed under Chapter 7 can be converted to a Chapter 13 or dismissed.

In a Chapter 7 bankruptcy, the debtor surrenders all nonexempt property to an appointed bankruptcy court trustee. The Chapter 7 trustee then liquidates the property through sales, and the proceeds of the bankruptcy sale are distributed to priority creditors. After the priority creditors are paid, the remaining balance is divided amongst any unsecured creditors. In most Chapter 7 bankruptcy cases, assets rarely trickle all the way down into the hands of the unsecured creditors. Thus, most unsecured creditors would rather see a debtor pursue a Chapter 13 bankruptcy rather than file a Chapter 7 bankruptcy.

In Arizona, an individual is not eligible to file a Chapter 7 bankruptcy unless:

1. Their income for the six months prior to bankruptcy filing is less

than the median income for the same size household in Arizona, or

2. Their monthly “disposable income” (the amount of income left

over per month after subtracting living expenses per modified IRS

guidelines) is less than a minimal allowed amount (income is based on an

average of the six months prior to filing);

3. Their debts are not primarily “consumer debts.”

These rules do have exceptions, and determining whether a person is eligible for Chapter 7 bankruptcy requires a thorough investigation into their financial information.

Chapter 13 Bankruptcy and whether debt collection can proceed

If the debtor is unable to file a Chapter 7 bankruptcy, then they will usually find themselves in bankruptcy court under Chapter 13 of the bankruptcy code. Under Chapter 13, the bankruptcy debtor is seeking to reduce their debt, and negotiate a debt adjustment. The Chapter 13 bankruptcy differs from the Chapter 7 in a number of ways. Specifically, in a Chapter 13 bankruptcy the bankruptcy debtor must turn over all of their disposable income to the bankruptcy trustee for a period of three years, must disperse any increases in disposable income to those creditors, and must seek the bankruptcy court’s permission to engage in significant activities outside the ordinary course of business. Thus, most attempt to file under Chapter 7 of the bankruptcy code rather than Chapter 7.

In cases where the debtor has filed under Chapter 13, or it has been converted to a Chapter 13 from a Chapter 7 bankruptcy, an debt collection attorney has a number of options at their disposal when a debtor is seeking relief under the bankruptcy code. After filing a notice of appearance, a debt collection attorney should review the amount of debt that the debtor owes the bankruptcy creditor. The attorney should also check to see how many other creditors have a claim. Being proactive at this point is what can make or break your chances of recovering a substantial percentage of the debtor’s obligations.

As mentioned above, a Chapter 13 bankruptcy is more favorable to the creditor. Once filed, the debtor will propose a Chapter 13 plan of repayment, which can provide for full, partial, or no planned repayment of unsecured claims. Interestingly enough, a substantial portion of the payments promised to secured creditors under Chapter 13 plans are never made. Thus, it is important that the creditor and its debt collection attorney be familiar with the guidelines of Chapter 13 and Chapter 7 bankruptcies since a single question can turn a Chapter 13 into a Chapter 7 Bankruptcy. In doing so, the experienced debt collection attorney could save their clients thousands of dollars that would otherwise not be accessible in a Chapter 7 bankruptcy.

Increasing the chances of successful debt collection

In today’s economy, it is a race against the clock for creditors. With the passage of time comes the chance that the economic, psychological, and legal factors will strain a debtor to their limit and force them to file bankruptcy. A vast majority of debtors default on their obligations because they have an inability to pay. It is vital to your business to ensure that your collections procedures are efficient, and being handled by an experienced debt collection attorney.

For the purposes of successful debt collection, it is helpful for the creditor remember that by being proactive they may be able to obtain payment, whereas the same action at a later time can result in nothing. Therefore, it is vitally important to seek the advice of an experienced debt collection attorney that is versed in both debt collection law and in bankruptcy law.

Federal Programs for home loan modifications during bankruptcy

The third quarter of 2009 saw a record number of foreclosures across Arizona according to RealtyTrac, an online marketplace for foreclosure properties. For the fifth quarter in a row, Arizona ranked second behind only Nevada with one out of every 55 homes threatened by foreclosure. In the Phoenix area alone, 2009 foreclosures jumped 158% over the 2008 figures.

While the first round of foreclosures in 2008 could be blamed on the meltdown in the subprime mortgage industry, subsequent rounds of foreclosures spoke to a deeper malaise in the national economy. With national unemployment statistics hovering officially at just under 10%, many previously credit-worthy individuals just couldn’t afford anymore to keep up with their mortgages. And with a large scale de-escalation in the true value of real estate, many individuals found themselves saddled with mortgages that cost them way more than any equity they had in their properties and simply chose to walk away from these “underwater” homes.

In March 2009 the federal government introduced a new program called Making Home Affordable (HAMP) which allows qualified borrowers’ existing loans to be modified so that borrowers are paying no more than 31% of their gross income towards their mortgages if their loan servicers are participating in the program. Other remedies also available to qualified homeowners include interest rate reduction, repayment period extension and deferrals, and even principal forgiveness in some cases.

But qualifying for the HAMP program is a complicated process. First the program is only available to homeowners with loans taken out before January 1, 2009 in the amount of $729,750 or less. Second, your loan servicer will review your financial history in minute detail and you may be required to attend financial counseling.

And what if other financial exigencies have forced you to consider filing for either Chapter 13 or chapter 7 bankruptcy? Can you still be eligible for a loan modification under the HAMP program?

Yes, you can be considered for a HAMP modification even with a Chapter 13 or chapter 7 bankruptcy on your credit report, but you will need to consult with an experienced bankruptcy lawyer who can help you obtain the reports and other information your loan servicer will have when they are determining whether you are qualified for HAMP. Whether you are a Phoenix homeowner looking for a bankruptcy lawyer in phoenix or an Arizona homeowner looking for an arizona bankruptcy lawyer, a qualified bankruptcy lawyer can assist homeowners facing foreclosure by allowing them to view themselves through their loan servicers’ eyes. If you are the one of those homeowners being threatened by foreclosure, you are well advised to call an arizona bankruptcy lawyer or a bankruptcy lawyer in phoenix as soon as possible.

What can bankruptcy do for you?

As we all know, times are tough. Many people are having problems with their investments and have been inquiring about their options. Unfortunately, however, many clients have tried “go at it alone” and have gotten themselves in even more financial distress. Some clients, which were successful business owners in the community, are on the verge of losing their homes.

In many cases, before it’s too late, we can help clients recover financially without the need of filing bankruptcy. However, even when we cannot, we can help with pre-bankruptcy planning, as well file the bankruptcy when it comes time. Pre-bankruptcy planning can help you save significant property!!!!

The longer clients wait to take action, the less options they are likely to have when they do decide to take action. Surprisingly, most clients don’t even know what their options are!!! People cannot make educated and informed decisions when they aren’t aware!!!!!

There are also those clients who fall for the marketing ploys of debt relief agencies. These agencies generally do not have attorneys that work on your case. Typically, these agencies will charge you a couple of thousand dollars, will try obtain a mortgage and/or loan workout program, and then, when they cannot obtain such a loan workout agreement, will tell you to go see an attorney because it appears that you may need to file bankruptcy. Also, even if these agencies are successful with obtaining a loan workout agreement, the agreements are usually very one-sided (in favor of the lender), are poorly written, and empower lenders even more than before. Frequently, such loan workout agreements compel the client to reaffirm the debt, which eliminates any chance of contesting the debt.

Furthermore, such agreements are usually unfavorable because they are only a temporary solution. These agreements are usually written by banks, and the banks are aware that the person is likely to continue having problems in the future and will likely file bankruptcy at some time in the future. This is exactly what banks want! Banks make out better this way because they get to keep all the money that was paid under the terms of the loan workout agreement, in addition to the collateral (in many cases) after the person files for bankruptcy! Thus, all the money that was paid under the terms of the loan workout agreement is lost.

If you are in financial distress, we can help you make an informed decision. You cannot make educated and informed decisions when they don’t even know what their options are!!!!! And if you need to file bankruptcy, we can also do that as well.

Arizona LLC Bankruptcy lawyers

The United States Bankruptcy code that deals with Chapter 11 Business Bankruptcy is one of the most complicated statutes in American history. Not surprisingly, there are few attorneys that handle these types of cases. Often times our business bankruptcy lawyers receive calls from clients in dire financial straits asking whether a Limited Liability Company (LLC) can file for Chapter 11 Bankruptcy here in Arizona. Although the Bankruptcy Code does not specifically say that an LLC can file for a business bankruptcy, the definitions found in the Bankruptcy code undoubtedly support the position that, yes they can….with several caveats.

Is an LLC eligible for a Business Bankruptcy under Chapter 11 Bankruptcy laws?

With a business bankruptcy, there are a number of considerations including whether an LLC bankruptcy of just one member affects the LLC as a whole; how an LLC is to be managed or wound up during an LLC business bankruptcy; and whether the LLC can continue to do business after filing for Chapter 11 Bankruptcy. First and foremost, an LLC is similar to both a partnership and a corporation but is still a very different animal. It is, however, normally treated the same as a corporation for Chapter 11 Bankruptcy purposes as long as the LLC declaring Chapter 11 Bankruptcy has not already dissolved.

The Chapter 11 Bankruptcy, or sometimes called a reorganization, gives the business bankruptcy debtor the rights, powers, and obligations of a trustee. While there are some exceptions, most of the time the business filing for bankruptcy steps in the shoes of the trustee to propose a schedule. This can be difficult when dealing with an LLC bankruptcy, as this type of business bankruptcy also affects the extent to which each member can participate in the bankruptcy based on equity holdings.

What role does the member play in an Chapter 11 Bankruptcy for an LLC business bankruptcy?

Interestingly enough, in cases where a trustee has been appointed by the bankruptcy court to handle the business bankruptcy, the operating agreement of the LLC in bankruptcy becomes null. This is because in those rare cases, individual members of the LLC in bankruptcy may be facing investigation or threat of litigation. Sometimes a business can fail because of unscrupulous dealings by individual members, and thus the individual member may be liable to the LLC for a breach of his or her fiduciary duty. Since an individual member of an LLC would be reluctant to sue themselves, the trustee must step into their shoes and act accordingly.

Often times, if there is a squabble, then an evidentiary hearing must be held in order to determine the status of the member. Generally, the outcome of this is dependent upon the role they played in the LLC. Those that played an integral role in the LLC may be treated differently than those that sat on the sidelines and passively invested money. This depends, however, on the factual scenario and should only be handled by an experienced Chapter 11 Business Bankruptcy lawyer

How to protect your rights when someone has filed bankruptcy

Across the country, Courts are seeing more and more debt-collection cases flood the courtrooms. Most of the cases involve credit card collections, foreclosures, or evictions. This proverbial debt collection crisis is the result of the economic crash that occurred in 2008, which caused housing values to plummet and major lenders to shut their doors. In turn, this debt collection crisis has translated into more and more people filing for bankruptcy which includes both Chapter 7 bankruptcy and Chapter 11 bankruptcy. As a result, the way debt collection agencies and debt collection lawyers practice has changed significantly. This article will address the issues that face the creditor in a bankruptcy and its impact on debt collection.

What happens if the debtor files for bankruptcy?

One of the most powerful features, and consequently one of the main reasons people pursue a bankruptcy to discharge their debt it, is that bankruptcy stops creditors from pursuing you for debt collection. Once filed, most collection activity must cease and go through the bankruptcy court. It goes without saying then that once a debtor files for bankruptcy you should consult with an experienced attorney to determine whether the debtor is eligible for bankruptcy relief. Your bankruptcy attorney should be familiar with the rules regarding Chapter 7 bankruptcy and Chapter 13 bankruptcy, or even Chapter 11 bankruptcy if the bankruptcy debtor wants to remain in bankruptcy because the debtors’ income exceeds the means test.

After the debtor files for bankruptcy an automatic stay goes into effect. The automatic stay prohibits bankruptcy creditors from taking any action to collect on the debt the bankruptcy debtor owes to the creditor. Again, there are a few exceptions to what kind of debt is discharged in a Chapter 7 bankruptcy and Chapter 13 bankruptcy, and the creditor should consult with an experienced bankruptcy attorney to determine whether debt collection can proceed. Once the bankruptcy creditor receive notice that the debtor has filed for bankruptcy, a lawyer experienced with debt collection and personal bankruptcy law will analyze the case and determine whether you can object to the debtors bankruptcy and file a motion to lift the automatic stay.

Whether a bankruptcy automatic stay can be put in place by the bankruptcy creditor depends on the type of bankruptcy that the bankruptcy debtor has filed. Since a Chapter 13 Bankruptcy is more favorable to a bankruptcy creditor, most debtors attempt to pursue filing a bankruptcy through Chapter 7. If this happens, all is not lost, as in certain instances a case initially filed under Chapter 7 can be converted to a Chapter 13 or dismissed.

In a Chapter 7 bankruptcy, the debtor surrenders all nonexempt property to an appointed bankruptcy court trustee. The Chapter 7 trustee then liquidates the property through sales, and the proceeds of the bankruptcy sale are distributed to priority creditors. After the priority creditors are paid, the remaining balance is divided amongst any unsecured creditors. In most Chapter 7 bankruptcy cases, assets rarely trickle all the way down into the hands of the unsecured creditors. Thus, most unsecured creditors would rather see a debtor pursue a Chapter 13 bankruptcy rather than file a Chapter 7 bankruptcy.

In Arizona, an individual is not eligible to file a Chapter 7 bankruptcy unless:

1. Their income for the six months prior to bankruptcy filing is less

than the median income for the same size household in Arizona, or

2. Their monthly “disposable income” (the amount of income left

over per month after subtracting living expenses per modified IRS

guidelines) is less than a minimal allowed amount (income is based on an

average of the six months prior to filing);

3. Their debts are not primarily “consumer debts.”

These rules do have exceptions, and determining whether a person is eligible for Chapter 7 bankruptcy requires a thorough investigation into their financial information.

Chapter 13 Bankruptcy and whether debt collection can proceed

If the debtor is unable to file a Chapter 7 bankruptcy, then they will usually find themselves in bankruptcy court under Chapter 13 of the bankruptcy code. Under Chapter 13, the bankruptcy debtor is seeking to reduce their debt, and negotiate a debt adjustment. The Chapter 13 bankruptcy differs from the Chapter 7 in a number of ways. Specifically, in a Chapter 13 bankruptcy the bankruptcy debtor must turn over all of their disposable income to the bankruptcy trustee for a period of three years, must disperse any increases in disposable income to those creditors, and must seek the bankruptcy court’s permission to engage in significant activities outside the ordinary course of business. Thus, most attempt to file under Chapter 7 of the bankruptcy code rather than Chapter 7.

In cases where the debtor has filed under Chapter 13, or it has been converted to a Chapter 13 from a Chapter 7 bankruptcy, an debt collection attorney has a number of options at their disposal when a debtor is seeking relief under the bankruptcy code. After filing a notice of appearance, a debt collection attorney should review the amount of debt that the debtor owes the bankruptcy creditor. The attorney should also check to see how many other creditors have a claim. Being proactive at this point is what can make or break your chances of recovering a substantial percentage of the debtor’s obligations.

As mentioned above, a Chapter 13 bankruptcy is more favorable to the creditor. Once filed, the debtor will propose a Chapter 13 plan of repayment, which can provide for full, partial, or no planned repayment of unsecured claims. Interestingly enough, a substantial portion of the payments promised to secured creditors under Chapter 13 plans are never made. Thus, it is important that the creditor and its debt collection attorney be familiar with the guidelines of Chapter 13 and Chapter 7 bankruptcies since a single question can turn a Chapter 13 into a Chapter 7 Bankruptcy. In doing so, the experienced debt collection attorney could save their clients thousands of dollars that would otherwise not be accessible in a Chapter 7 bankruptcy.

Increasing the chances of successful debt collection

In today’s economy, it is a race against the clock for creditors. With the passage of time comes the chance that the economic, psychological, and legal factors will strain a debtor to their limit and force them to file bankruptcy. A vast majority of debtors default on their obligations because they have an inability to pay. It is vital to your business to ensure that your collections procedures are efficient, and being handled by an experienced debt collection attorney.

For the purposes of successful debt collection, it is helpful for the creditor remember that by being proactive they may be able to obtain payment, whereas the same action at a later time can result in nothing. Therefore, it is vitally important to seek the advice of an experienced debt collection attorney that is versed in both debt collection law and in bankruptcy law.

When considering whether to file bankruptcy it’s important to consider all available options. For many, the need for and advantages of bankruptcy are obvious. To others, it will be a last resort. As the debts pile up and the creditors hound you, it is important to know what can be done. This article will provide basic information on the types of bankruptcies available to both consumers and businesses.

Chapter 7 Bankruptcy – Liquidation

Chapter 7 Bankruptcy is designed for debtors who are having financial difficulties and are not able to repay their debts. If your current monthly income is above the State Median Income, you’ll be required to perform a Means Test to determine if you’re eligible for this type of bankruptcy relief. If you do not meet the requirements of the Means Test, then you may be precluded from filing a Chapter 7 Bankruptcy and have the option of converting to Chapter 13 Bankruptcy or filing a Chapter 13 Bankruptcy.

Under Chapter 7 Bankruptcy a trustee takes possession of all your property. You may claim certain property as exempt under Arizona law. You can only exempt value of property that is not subject to the liens of your creditors. The trustee then liquidates the non-exempt property and uses the proceeds to pay off your creditors according to priorities of the Bankruptcy Code.

The purpose of filing a Chapter 7 Bankruptcy is to obtain a discharge of your existing debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, your discharge may be denied by the Court, and the purpose for which you filed the bankruptcy petition will be defeated.

Even if you receive a discharge, there are some debts that are not discharged under the law. Therefore, you may still be responsible for such debts as certain taxes and student loans, alimony and support payments, criminal restitution, and debts for death or personal injury caused by driving while intoxicated with alcohol or drugs.

Under certain circumstances you may be able to keep property that you have purchased subject to a valid security interest. Some of these options include what is called redemption and the renewal or reaffirmation of an existing pre-bankruptcy debt. Your attorney can explain the options that are available to you.

Chapter 13 Bankruptcy – Repayment of All or Part of the Debts of an Individual with Regular Income

Chapter 13 Bankruptcy is designed for individuals with a regular and stable source of income who are temporarily unable to pay their debts but who desire to use their best efforts and good faith to pay them in installments over a period of time subject to the protections afforded by the Chapter 13 Bankruptcy rules. You are only eligible for Chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.

Under Chapter 13 Bankruptcy you must file a plan with the Court to repay your creditors all or part of the money that you owe them, using your earnings or by the disposition and/or abandonment of certain collateral such as land and motor vehicles. You are protected from your creditors in most cases upon the filing of your case but your plan must be approved by the Court before it can take effect. Under Chapter 13 Bankruptcy, unlike Chapter 7 Bankruptcy, you may keep all of your property, both exempt and non-exempt, as long as you continue to make payments under the plan.

After completion of payments under the plan your debts are discharged except for any domestic support obligations, student loans, and certain taxes, among others.

Chapter 11 – Reorganization

Chapter 11 Bankruptcy is designed primarily for the reorganization of businesses but is also available to consumer debtors. Its provisions are quite complicated, and any decision for an individual to file a Chapter 11 Bankruptcy petition should be reviewed with an attorney. Most Chapter 11 Bankruptcy cases are simply too expensive for the great majority of consumer debtors.

Chapter 12 Bankruptcy Family Farmer

Chapter 12 is designed to permit family farmers to repay their debts over a period of time from future earnings and is in many ways similar to a Chapter 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm.

Credit Counseling

Reputable credit counselors can advise you on managing your money and your debts. They may also be able to develop a plan to repay your debts. But, most credit counselors are not reputable and charge high fees and contributions that will cause you to fall deeper into debt. Furthermore, many misrepresent their non-profit status and/or their affiliations with religious or charitable organizations. JPG Law only recommends that a person seek the credit counseling services of a group that has been approved by the United States Trustee Department or the Bankruptcy Administrator.

Honesty is Required

A person who knowingly and fraudulently conceals assets or makes a false oath or statement under penalty of perjury in connection with a case under this the bankruptcy code shall be subject to fine, imprisonment, or both and all information supplied by a debtor in connection with a case under this title is subject to examination by the Attorney General.

Final Thoughts

There is a general consensus in the legal community that the Bankruptcy Code has become much more complex since it was reformed in 2005. After the Bankruptcy Code was reformed, many attorneys decided to stop practicing bankruptcy law because of how complex the law became. Clearly, if licensed attorneys are baffled by the new law, clients should not rely on themselves or “licensed document preparers” to get through this difficult process. A qualified attorney, who will personally help you through this trying ordeal, should be employed. Like the old saying goes, you get what you pay for.

We are available to help you get through this difficult process.

What Chapter 7 Bankruptcy Means to You

Chapter 7 of the federal bankruptcy code is designed for individuals unable to repay their debts. These debts may include car loans, credit cards, personal loans, or even mortgages. There are various reasons why people choose to file bankruptcy, namely because they are in more debt than they’re able to afford to repay. There are also individuals who have recently lost their job or fallen victim to an ailing economy. Whatever the reason and generally speaking, Chapter 7 bankruptcy allows for an individual to have certain debts discharged for which the debtor is no longer liable.

Do I Meet the Requirements of Chapter 7 Bankruptcy?

In order to be eligible to file Chapter 7 bankruptcy, you must meet certain income guidelines through what is called a means test. If your income is above the state median income level, you will be required to show that you are financially unable to repay your debts through the use of a means test. If you meet the requirements of the means test, you will be eligible to proceed with the filing of your Chapter 7 bankruptcy. Hiring legal counsel to help you determine your eligibility is crucial to all the intricate, meticulous steps involved in the legal process.

What Happens to My Property?

Your legal counsel will help you determine what property will be exempt and what property will be non-exempt from your bankruptcy proceedings. Exempt property, for example, might include your car or your house. Non-exempt property may include stocks, bonds and other cash assets. Your property is then assigned to a trustee, who will liquidate non-exempt property to pay off the debts you owe to your creditors. Having an attorney who is well-versed in bankruptcy law will assist you in keeping as much of your property as possible.

Do I Need an Attorney to Help Me Through the Bankruptcy Process?

Having an attorney handle your bankruptcy case would definitely be a huge asset to any debtor wishing to filing Chapter 7 bankruptcy. Although a debtor does have the option to file pro se, or on their own, an attorney can help you sort through the legal details of the law and may be able to help you keep more of your property and assets than you originally thought.

Collaborating with an chapter 7 bankruptcy attorney on your bankruptcy case is essential. Muddling through all the tedious, finer points of the law is difficult and only through the help of an attorney may you come out of debt better than you had planned.

Chapter 13 Bankruptcy – Repayment of All or Part of the Debts of an Individual with Regular Income

Chapter 13 Bankruptcy is designed for individuals with a stable source of income who are temporarily unable to pay their debts, but desire to use their best efforts and good faith to pay them in installments over a period of time subject to the protections afforded by the Chapter 13 Bankruptcy rules. You are only eligible for Chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.

Under Chapter 13 Bankruptcy you must file a plan with the court to repay your creditors all or part of the money you owed using your earnings, or by the disposition and/or abandonment of certain collateral, such as land and motor vehicles. You are protected from your creditors in most cases upon the filing of your case but your plan must be approved by the court before it can take effect.

Under Chapter 13 Bankruptcy, unlike Chapter 7 Bankruptcy, you may keep all of your property, both exempt and non-exempt, as long as you continue to make payments under the plan.

After completion of payments under the plan, your debts are discharged except for any domestic support obligations, student loans and certain taxes.