Madisonville Chapter 13 Bankruptcy Attorney

Professional and Compassionate Support with 20k Bankruptcy Cases Handled

If you or someone you know in Madisonville would like to inquire about a Chapter 13 filing, please contact my firm to schedule a bankruptcy evaluation with me. As a bankruptcy lawyer practicing for 40 years, I can provide the information, assistance, and representation you need to accomplish a Chapter 13 bankruptcy filing. My firm concentrates on bankruptcies and debt relief for clients throughout Madisonville, and we can help you throughout the Chapter 13 process, from determining your eligibility to creating your repayment plan.

Schedule an appointment with me online or at (888) 392-0409 to discuss your options in more detail.

Who Can File for Chapter 13?

Chapter 13 bankruptcy, also called "wage-earners" bankruptcy, allows individuals with regular sources of income to pay off all or some of their debts to a Chapter 13 trustee through a repayment plan over a period of usually 3-5 years. Note that Chapter 13 is not available to companies, though an individual with business-related debts that they are personally responsible for can include these in their Chapter 13 filing.

Note that Chapter 13 allows a debtor to keep a valuable asset, such as their home. As a result, Chapter 13 is particularly beneficial for those who have fallen behind on certain payments and seek to catch up without losing these assets. In most cases, upon filing a Chapter 13 petition, an automatic stay will be imposed on creditors by the court that stops creditors from repossessions and foreclosures.

The Repayment Plan

With a Chapter 13 petition, the debtor must submit a repayment plan to the court for approval.

If the creditors and trustee do not object to the plan, the court will likely approve it if it meets the following criteria:

• the plan is feasible (e.g., the debtor has enough income to pay the creditors as stated);
• the debtor proposed the plan in good faith (they aren’t trying to manipulate the bankruptcy process); and
• the plan complies with bankruptcy law.

If the court approves the plan, the debtor will make regular payments to the trustee who will distribute them to the creditors as established in the repayment plan. Some examples of payments a debtor may make in a Chapter 13 case are priority debt (child support, alimony, tax obligations), secured debt (car or mortgage payments if they seek to keep the car or house), unsecured debt (credit card balances, medical bills), and values of any nonexempt property the person intends to keep.

After completing the debt payments called for in the repayment plan, the debtor will be released from liability for the remainder of their dischargeable debts. While the duration of the repayment plan will depend on how much a person earns, most filers pursue a 5-year plan because monthly payments will often be significantly lower over the course of 5 years. Those who convert from a Chapter 7 case to a Chapter 13 case, however, generally work with a 3-year plan.

Chapter 13 vs. Chapter 7

As mentioned above, it is possible that individuals filing Chapter 7 may convert to Chapter 13. The main difference between Chapter 7 and Chapter 13 is that Chapter 7 is mainly meant for individuals with a limited income and are unable to pay off debts. As a result, assets may end up being liquidated to discharge debt in 4-6 months. Chapter 13 Bankruptcy, on the other hand, offers a repayment plan that organizes the person’s debt into one large sum to be paid off eventually in 3-5 years.

Contact The Law Offices of Mark Little to Get Started!

If you are currently involved in a bankruptcy situation and seek to take legal action, consult my firm for legal support. Every financial situation is unique. We will take the time to create a personalized strategy to get you out of debt.

I have been filing bankruptcy cases with clients for 40 years and can provide the professional and experienced advice you need. Chapter 13 bankruptcy may be particularly desirable if you are able to pay off your debts over the course of 3-5 years, but the court will need evidence of a feasible repayment plan in order to approve this decision. I can work with you to develop a strong repayment plan the court will be likely to approve. Let me help you resolve your debt situation as soon as possible with Chapter 13 in Madisonville.

To learn more about your options or what works best for your situation, schedule a consultation with me at The Law Offices of Mark Little online or at (888) 392-0409!