Times of economic hardship can force families and the owners of small businesses to make difficult decisions. When bills become unmanageable, you have the choice of declaring bankruptcy. With a few important exceptions, declaring bankruptcy can allow you to discharge much of your debt and obtain a fresh financial start.
Our Spring Lake Heights Chapter 13 bankruptcy lawyer can assist you with this process. Chapter 13 bankruptcy begins with an evaluation of your current finances and a determination if a bankruptcy filing would help. If so, the bankruptcy attorneys from Gillman, Bruton & Capone will guide you to submit the necessary paperwork for your cause, file your case to the bankruptcy court which results in an automatic stay on any current collection efforts. We understand how difficult this situation is for you and we are available to talk at any point.
Chapter 13 bankruptcy is a way for individuals, couples, and business owners to escape out from under severe debt. This debt can come in many forms and some common examples include:
The main goal of a Chapter 13 bankruptcy case is to restructure and repay your debts in order to have them discharged. In addition, simply filing a bankruptcy petition will result in that court issuing an automatic stay against all collection efforts, including pending lawsuits and Sheriff Sales. The automatic stay also freezes all private debt collection activity, puts a hold on all ongoing court activity, and prevents creditors from filing new cases against you until the matter is resolved. Consulting with our Spring Lake Heights Chapter 13 bankruptcy attorney can help you better understand the benefits of seeking bankruptcy protection.
The first step in evaluating whether Chapter 13 bankruptcy protection is possible is determining your eligibility. Chapter 13 generally only applies to individuals and couples. However, you may be able to obtain relief from business debt if your business’s finances are closely related to your personal accounts.
Chapter 13 bankruptcy is available to a person or married couple if they owe less than the applicable debt limits. Under 11 United States Code § 109(e), individuals seeking this protection could not owe more than a certain amount of unsecured and secured debt to qualify for Chapter 13 bankruptcy.
Congress has modified the debt limit for Chapter 13 bankruptcy cases to $2.75 million (both secured and unsecured debt combined), which is significantly higher than the prior limit of $1.86 million with limits in the amount of unsecured and secured debt. There are certain types of debt that are unavailable for discharge, most notably student loans.
Talking with a Spring Lake Heights Chapter 13 bankruptcy lawyer is the best way to learn if this choice is the right one for you.
Simply filing a bankruptcy petition comes with immediate benefits. However, these are only available if the debtor(s) files a petition that meets the requirements of the Bankruptcy Code. This includes providing the court with a complete disclosure of all of their assets, debts, income and expenses, and other financial information as required under 11 United States Code § 521. Our experienced lawyers help parties gather and organize this information for their petition.
A Chapter 13 bankruptcy case also requires debtors to make scheduled payments to the court via a Chapter 13 plan. While the court ultimately approves this plan, a standing Chapter 13 trustee submits a suggested program to the judge. As long as you continue to make your payments according to the plan, the court will keep the automatic stay in place.
Filing a petition for Chapter 13 bankruptcy protection comes with many benefits. From the outset, a court will create an automatic stay on all current and future collection efforts. In addition, complying with all court rules and completing a plan of reorganization will see the total discharge of all eligible debts, which can include a current mortgage, credit card debts, and medical bills.
Talk with a Spring Lake Heights Chapter 13 bankruptcy lawyer today. The experienced lawyers at Gillman, Bruton & Capone understand that this is a difficult time for you and we are prepared to help explain the process behind Chapter 13. We assist you in gathering the financial data needed to submit a formal application for protection to the court and send the proposed payment plans to the standing Chapter 13 trustee to obtain more favorable terms for you. Speak with us during a free consultation to learn more.