A Chapter 13 bankruptcy is a legal process for individuals with regular income to repay debts under a court-approved plan over three to five years, allowing them to keep their assets while reorganizing their debt. Chapter 13 is a form of bankruptcy that focuses on debt restructuring, not the liquidation of assets, such as what can happen with Chapter 7.
A Toms River Chapter 13 bankruptcy lawyer will examine your income, assets, liabilities, and debts to determine if Chapter 13 is the right option for you. Our experienced bankruptcy attorneys can represent you at the meeting of creditors and negotiate on your behalf to reach an agreement on the plan of reorganization.
A Chapter 13 bankruptcy is a court process for individuals with regular income to repay their debts through a structured plan over a period of several years. Filing for a Chapter 13 bankruptcy can prevent a range of adverse creditor actions. Chapter 13 can help you achieve several goals, including stopping foreclosure on your home and repossession of assets, such as your cars, provided that you stay current on payments outlined in the plan. If you are facing a potential bankruptcy action, you may feel overwhelmed by debt, unsure what your legal options are or what your next steps should be.
A Toms River lawyer can help you understand your rights, obligations, and the legal procedures involved in a Chapter 13 bankruptcy. We can guide you through the entire process, from an initial case review, to filing, court hearings, and plan confirmation. You need an attorney by your side to protect your rights and explain your legal options at each phase of a Chapter 13 bankruptcy proceeding.
Before filing the bankruptcy petition, you must obtain credit counseling from an approved agency and obtain a certificate of completion. You must also present a plan of reorganization to the bankruptcy court that details how you will repay your debts over three to five years. A trustee will then be appointed to oversee the bankruptcy case and ensure the plan is followed.
After you file a bankruptcy petition and plan, a meeting of creditors will be held to review the plan. If approved, at the end of the repayment period, the court will issue a discharge, which means you are no longer legally responsible for any remaining debts covered by the plan.
Our lawyers can assist in determining the value of your assets and debts, which is crucial for preparing your bankruptcy plan. We can negotiate with creditors on your behalf, potentially leading to a lower monthly payment or achieving more favorable terms in your plan of reorganization.
There are limits on the amount of secured debt (such as a home or car) and unsecured debt (such as credit cards or medical bills) that can be included in a Chapter 13 case. Effective on April 1, 2025, the Chapter 13 debt limits will increase, with the new limits remaining in force for cases filed through March 31, 2028. The secured debt limits will rise to $1,580,125 and unsecured debt limits to $526,700.
A Chapter 13 bankruptcy is specifically designed for individuals who have a consistent income source, whether from employment, self-employment, or elsewhere. A Toms River attorney can guide you through each step of a Chapter 13 bankruptcy case, including proposing a feasible plan of reorganization.
The plan of reorganization can consolidate your debts and potentially reduce the amount you owe to some creditors, depending on the circumstances. After successfully completing the plan of reorganization, the final step is discharging the debt. If your debt is discharged, you are no longer legally obligated to repay it.
To file for a Chapter 13 bankruptcy, you must have regular income and be able to repay a portion or all of your debts. Once a Chapter 13 case is filed, creditors are generally prohibited from contacting you or taking collection actions. Payments can often be lower than monthly payments on credit cards and can pay off your debt in a shorter time frame.
A Chapter 13 bankruptcy can help you stop foreclosure, repossession, and other collection actions, and it can provide a fresh start by restructuring your debt. Learn if a Toms River Chapter 13 bankruptcy lawyer at Gillman Capone can take your case. Call us to discuss your best available options during your free and confidential case evaluation.
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