Filing Chapter 13 Bankruptcy in Cheyenne
Chapter 13 Bankruptcy is a legal process that allows individuals with regular income to create a repayment plan to settle their debts.
Unlike Chapter 7 Bankruptcy, which involves liquidating assets, Chapter 13 allows individuals to keep their property as long as they make regular payments according to the plan.
This option is ideal for those who want to retain their assets and have the ability to repay their debts over time.
Advantages of Chapter 13
After understanding what Chapter 13 Bankruptcy entails, individuals may be interested in learning about its advantages.
One major advantage is that it allows individuals to keep their assets while reorganizing their debts. This can provide a sense of security and stability during a difficult financial situation.
Additionally, Chapter 13 allows individuals to create a manageable repayment plan based on their income and expenses, providing a clear path towards debt relief and a fresh start.
Chapter 13 Bankruptcy Eligibility
To be eligible for Chapter 13 bankruptcy, individuals must meet certain requirements and criteria. These include:
- Having a regular income
- Owning unsecured debts less than $419,275
- Owning secured debts less than $1,257,850
- Being up to date on tax filings
Meeting these eligibility criteria is essential for individuals seeking the benefits of Chapter 13 bankruptcy, such as a manageable repayment plan and the opportunity to keep their assets.
How does Chapter 13 work?
Once a debtor meets the eligibility criteria for Chapter 13 bankruptcy, they can begin to understand how this process works and what it entails.
Chapter 13 bankruptcy allows individuals with regular income to create a repayment plan to pay off their debts over a period of three to five years. This plan is based on their ability to pay and must be approved by the court.
Throughout the repayment period, the debtor makes monthly payments to a bankruptcy trustee, who then distributes the funds to creditors according to the plan.
The Chapter 13 Plan and Confirmation Hearing
The Chapter 13 plan is a crucial document that outlines the debtor’s proposed repayment schedule for their debts and is subject to approval by the court.
The plan includes details such as the duration of the repayment period, the amount to be paid to each creditor, and the debtor’s disposable income.
The confirmation hearing is where the court reviews the plan and determines if it meets the requirements of the bankruptcy code.
If approved, the debtor can proceed with the repayment plan.
The Chapter 13 Bankruptcy Discharge
After the Chapter 13 plan is approved during the confirmation hearing, debtors can look forward to receiving a discharge of their bankruptcy. The discharge is a court order that releases debtors from their obligation to repay certain debts.
However, not all debts are dischargeable. Debts such as child support, alimony, certain taxes, and student loans can’t be discharged.
It’s important for debtors to understand which debts can be discharged and which can’t before filing for Chapter 13 bankruptcy.
The Chapter 13 Bankruptcy Hardship Discharge
Debtors may be eligible for a Chapter 13 bankruptcy hardship discharge if they experience unexpected financial difficulties during their repayment plan. This type of discharge provides relief for individuals who are unable to complete their repayment plan due to unforeseen circumstances.
Here are four key points to consider about the Chapter 13 bankruptcy hardship discharge:
- It allows debtors to receive a discharge even if they haven’t completed their repayment plan.
- Debtors must demonstrate that their failure to complete the plan is due to circumstances beyond their control.
- Examples of qualifying hardships include job loss, medical emergencies, or natural disasters.
- The court will evaluate each case individually to determine if a hardship discharge is appropriate.
Hiring a Chapter 13 Bankruptcy Lawyer
When filing for Chapter 13 bankruptcy in Cheyenne, it’s crucial to have the assistance of a knowledgeable and experienced bankruptcy lawyer.
Hiring a Chapter 13 bankruptcy lawyer can provide individuals with the guidance and expertise needed to navigate the complex legal process.
These lawyers can help clients understand their rights, develop a realistic repayment plan, and ensure that all necessary paperwork is filed correctly and on time.
Call Us Today for Assistance
To find expert guidance on filing Chapter 13 bankruptcy in Cheyenne, consider reaching out to a qualified attorney for assistance today. A bankruptcy lawyer can provide the support and knowledge needed to navigate the complex legal process.
Here are four reasons why hiring a Chapter 13 bankruptcy lawyer is beneficial:
- Experience and expertise in bankruptcy law.
- Assistance with creating a feasible repayment plan.
- Protection from creditor harassment and legal actions.
- Representation in court proceedings.
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