Chapter 13 Bankruptcy is for clients who want to keep their homes or cars, are behind on payments and can afford to get caught up over a three to five year period. It is also designed for clients who are unable to discharge their debts in a Chapter 7 Bankruptcy. Chapter 13 consolidates overdue bills and repays pre-filing arrears in monthly payments for a period of up to 5 years.
The Chapter 13 Bankruptcy Law Process
In our initial consultation with you we will look at your entire financial situation. If we agree that a Chapter 13 Bankruptcy is your best alternative, then we prepare a Chapter 13 Plan that suits your circumstances and abilities. This plan provides for one monthly payment to the Bankruptcy Trustee who, in turn, distributes the payments to your creditors. When you have made all of the payments then you receive a discharge of all debt. Your monthly payment depends on your income and expenses. It also depends on how much debt you have and what type of debt you have (home mortgage or auto loan) or whether it is unsecured debt (credit cards, etc).
The Law Offices of Laura D. Frye Ltd. will also help you by reducing some unsecured debts, thus allowing you to pay just a fraction of the debt based on your available monthly income. In some cases you may pay only 10% of the debt. Other debts, such as non-dischargeable priority debts, must be paid in full. These include Maintenance/Alimony, child support, taxes owed, criminal fines and restitution.
Chapter 13 Bankruptcy Can Help You:
- Stop creditor harassment
- Stop foreclosure
- Prevent repossession
- Stop wage garnishment
- Establish a debt consolidation and debt repayment plan
Chapter 13 bankruptcy filing is appropriate for debt consolidation, debt relief and small business reorganization. The filing requires a repayment plan that may last up to 5 years, and Laura D. Frye can help you develop a Chapter 13 plan that you can live with and afford. It is critical that your plan be viable, as missing a monthly payment can lead to a dismissal. Laura D. Frye will explain how the plan works so you can be successful.
If you have the financial means and the desire to repay your debts, Chapter 13 personal debt relief or debt reorganization may be the bankruptcy option for you. Chapter 13 may be available to help you consolidate your debt while keeping assets that might otherwise be lost by a repossession or other collection activity. Contact The Law Offices of Laura D. Frye today in Gurnee, IL. for an appointment and see if Chapter 13 is right for you.