Hoffman Estates Bankruptcy Lawyer On Keeping Rights Under Chapter 13

Will I lose any of my rights when I file for Chapter 13 is a common question heard by Hoffman Estates bankruptcy lawyer David Siegel.  You have the federal right to file Chapter 13 bankruptcy.  Chapter 13 bankruptcy is available under Title 11 of the United States Code, and you have the absolute federal right to file a bankruptcy.  You do not lose any of your constitutional rights.  You do not lose the right to vote, you do not lose the right to do anything by filing a Chapter 13 bankruptcy.  What you gain under Chapter 13 is the ability to take control of your debt repayment plan.  You are basically telling the creditors, “I am going to repay you through a Chapter 13 trustee.  You are going to take monthly disbursements from the Chapter 13 trustee, and you cannot contact or collect from me individually.” 

The benefit of Chapter 13 is that you keep all of your rights, and the only rights that are restricted are those of the creditors.  Now, certain creditors have to be paid back in full.  Some creditors can be paid back less than in full.  And all creditors must accept the payment plan provided that you are complying with all the terms of the bankruptcy code, provided that the trustee recommends your case for confirmation, and provided you continue to make all of your payments over the life of your Chapter 13 plan.  Chapter 13 is a great way to take control of your finances and to repay creditors over an extended period of time at a very low rate and at very low interest.