Qualifying for Chapter 13 Protection
If you have a stable income and some money left after your living expenses are paid, you will probably be eligible for Chapter 13 bankruptcy. This protection is available if you earn too much to qualify for Chapter 7 liquidation but don’t have so much debt that Chapter 11 restructuring is required. It’s a satisfactory middle ground for many clients.
Advantages of Chapter 13 Bankruptcy
The primary advantage of Chapter 13 bankruptcy is that you can keep your hard-earned assets, which is important if you have equity in a car, luxury goods or valuable property. It’s even possible to stop foreclosure proceedings and save your investment, but you must make all of the required catch-up payments. Remedial payments for other secured debts can be extended for the duration of the multi-year plan to make things more manageable.
How It Works
You must file a petition for Chapter 13 protection in the bankruptcy court where you live. You need to submit a repayment proposal along with your request. I will work with you to develop and present the plan. Payments are usually made over the course of three to five years. The monthly payments are based on your income, assets and expenses. At the end of the term you will have paid some or all of your debts. Any remaining balance will be discharged. During the bankruptcy, creditors and debt collectors cannot harass you. After filing, you are granted an automatic stay that immediately protects you from collections and adverse actions.
If you are considering Chapter 13 bankruptcy or are looking for alternatives, call Gary Hammond at 405-216-0007. Mitchell & Hammond is focused on helping individuals and businesses with bankruptcy and debt relief. We have served residents of Norman, Edmond and Oklahoma City for more than 25 years.