Lynwood Bankruptcy Attorney Recommends Chapter 13 To Reorganize Non-...

Another area where chapter 13 comes in handy is for otherwise non-dischargeable debt such as taxes, parking tickets, child support, student loans, and tow-away violations.  For these types of debts, chapter 7 will not eliminate them at all; therefore, chapter 13 could be used to repay those types of debts over the next three to five years.  This reorganization that the debtor is allowed really helps someone keep their license from being suspended, keep themselves from being locked up for failure to pay child support, keeps their license from being suspended based on parking tickets or tow-away violations.  It keeps the IRS from being able to garnish a huge percentage of their wages. 

By reorganizing these types of debts under a chapter 13 repayment plan, the debtor is given some breathing room.  The debtor is given the ability to repay the debt over the next three to five years based on what they have available income minus expenses. 

Just like in a chapter 7, a chapter 13 bankruptcy case is also going to be filed with the clerk of the US Bankruptcy Court.  There is also going to be a meeting of creditors about 30 to 40 days after the case is filed.  A notice will go out to all the creditors, the debtor, and the debtor’s attorney.  The debtor will appear before the chapter 13 trustee who will exam the debtor under oath pertaining to their petition and their schedules, their statement of affairs. 

The trustee will make a determination as to whether the debtor is proposing a plan in good faith and whether the debtor is providing all their disposable income per month to the chapter 13 repayment plan.  Approximately 30 days thereafter, the trustee and the debtor’s attorney will appear before the bankruptcy court for what is know as a confirmation hearing.  At this confirmation hearing, the trustee will stand before the court and either recommend that the debtors plan be approved or possibly deny the debtor’s plan

More information is available at Lynwood Bankruptcy Lawyer or call David Siegel directly at (847) 520-8100.