Schiller Park Bankruptcy Attorney And Chapter 13

According to Schiller Park bankruptcy attorney, Chapter 13 is a reorganization under Chapter 13 of the United States Bankruptcy Code whereby an individual can repay either all or a portion of his debts over a 3 to 5 year period.  Chapter 13 is typically used to save a home that’s in foreclosure by paying back the mortgage arrears over the next 3 to 5 years while being allowed to make the regular first mortgage payment on time once again.  Chapter 13 is also a great way to reorganize debt that is otherwise non-dischargeable such as student loans, recent taxes, parking tickets, child support, maintenance and debts incurred via fraud.

The Chapter 13 trustee is the person who will collect or receive the monthly payment from the debtor.  And the trustee will make disbursements according to the plan that is filed by the debtor.  The amount that the debtor pays per month is going to depend on income, expenses, assets and liabilities.  To qualify under Chapter 13, you must be an individual and you must have regular income from some source.  The trustee is going to make sure that you are putting all of your disposable income towards your Chapter 13 repayment plan.  If at any time you fail to make a payment, the trustee has the right to bring a motion to dismiss and have your case thrown out.  Additionally, if you fail to make a post-petition mortgage payment directly to your lender, then that lender can bring a motion to modify the stay and be removed from the bankruptcy case. 

Chapter 13 is a complicated case and you need a qualified attorney to help you prepare the proper paperwork and guide you throughout the process.  There is one meeting before the trustee and that there is a confirmation hearing.  Provided your case goes successfully, you can continue to make your monthly payments for the next 3 to 5 years and hold your creditors off.  The best thing about a Chapter 13 is that if creditors do not file a proof of claim and you complete your Chapter 13 bankruptcy case, then those creditors who did not file proofs of claim, their debts are eliminated 100%. 

Contact your local bankruptcy attorney for help regarding Chapter 13 qualifications and responsibilities.