Is Chapter 13 Bankruptcy Right For You?

When individuals cannot qualify for Chapter 7 bankruptcy or when such an option is not right for your personal circumstances, Chapter 13 bankruptcy may still be available. The attorneys at Poole, Mensinger, Cutrona & Ellsworth-Aults, LLP, can help you determine what sort of bankruptcy options are available for you. We will review your circumstances and provide you compassionate and knowledgeable advice.

How Chapter 13 Bankruptcy Works

In a Chapter 13 bankruptcy case, the debtor puts forward a plan, following the rules set forth in the bankruptcy laws, to repay certain creditors over a period of time, usually from future income. A Chapter 13 bankruptcy case may be advantageous in that the debtor is allowed to get caught up on a mortgage or car loans without the threat of foreclosure or repossession, and is allowed to keep exempt and non-exempt property. The debtor's plan is a document outlining to the Bankruptcy Court how the debtor proposes to dispose of the claims of the debtor's creditors. The debtor's property is protected from seizure from creditors, including mortgage and other lien holders, as long as the proposed payments are made and necessary insurance coverage's remain in place. The plan generally requires monthly payments to the bankruptcy trustee over a period of three to five years. If you are employed, arrangements will be made to have these payments made automatically through payroll deductions after the confirmation of your Chapter 13 bankruptcy plan.

The Requirements For Chapter 13

You must list all your debts, (including claims against you which you dispute, personal loans, etc.), assets and other information in the Bankruptcy Petition.

About three to four weeks after the Bankruptcy Petition is filed, a Hearing, (known as the 341 Creditor's Meeting), is held in Wilmington to give your creditors an opportunity to question you and to determine if the Bankruptcy Petition is in order. A trustee is assigned to your case, and he/she will ask whether you are familiar with the Bankruptcy Petition, whether you have listed all your debts and assets, and how you got into financial trouble.

About three weeks after the creditor's meeting, a hearing will be held to confirm your plan. If the plan meets the court's approval, you will pay the trustee a sum of money every month. This money will, in turn, be distributed to your creditors.

If you have real property, you must continue to make your regular monthly mortgage payments directly to your mortgage company.

Let An Experienced Bankruptcy Lawyer Help You

To contact Poole, Mensinger, Cutrona & Ellsworth-Aults, LLP, to set up a free initial consultation regarding your financial circumstances, please call our Delaware office at 302-358-2679 or fill out our online form.

Poole, Mensinger, Cutrona & Ellsworth-Aults, LLP, is a debt relief agency. We help people discharge their debts through the bankruptcy code. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. This is advertising material.