Do I need an attorney to file Ch 13?
There is nothing legally preventing you from filing a Chapter 13 bankruptcy on your own. However, less than 1% of pro se (self) Chapter 13 filers gets their plan approved. The success rate for getting plans approved by filers represented by attorneys is 55%.
Will people know if I file Chapter 13?
While bankruptcies are a matter of public record, for the most part, only your creditors will be notified of your bankruptcy. Your employer or landlord may also be notified in certain situations. Family and friends will likely only learn of your bankruptcy if you inform them of it.
What debts are dischargeable in a Ch 13 bankruptcy?
Unsecured debts such as credit cards and medical bills are dischargeable in both a Chapter 7 and a Chapter 13. Some debts can be included in only a Chapter 13, and not a Chapter 7. These include debts incurred to pay non-dischargeable taxes, debts from property settlements in family law proceedings, and debts from willful and malicious damages to property. You can also discharge junior mortgages on your home if you owe more on your home than it is worth.
How much does it cost to file a Ch 13 bankruptcy?
The court filing fee for a Chapter 13 bankruptcy is $310, and the fees for credit counseling courses vary. While attorney’s fees for a Chapter 13 are typically more expensive than for a Chapter 7, they can be worked into your plan. Your attorney will likely require some payment up front, which will vary by region and office.
How long does a Chapter 13 bk last?
A Chapter 13 bankruptcy lasts 3-5 years. If you are below the median income level for your state based on your family size, your plan will be 3 years. If you are above the median income level, your plan will be 5 years.
What are the advantages of a Chapter 13 bankruptcy?
A Chapter 13 gives you the opportunity to catch up on payments on your house or vehicle. In a Chapter 13, you can pay off any arrearages over 3-5 years, while a Chapter 7 bankruptcy will only provide you with about 3-5 months to pay off these debts. Chapter 13 also has a provision for consumer debts that will protect any cosigners. Depending on your income and the amount of unsecured debt you have, you may not be required to pay off the entirety of your debt.
What are the disadvantages of a Chapter 13 bankruptcy?
One of the obvious advantages of a Chapter 13 is that you actually have to pay some or all of your debts, while they are merely discharged in a Chapter 7. There is also the riskiness of drafting your plan and experiencing a change in income and not being able to make your payments anymore. You can risk your case being dismissed if this happens.
What is a Chapter 13 discharge?
A chapter 13 discharge is the completion of you Chapter 13 Bankruptcy. This can only occur when you have completed all the steps of the bankruptcy and completed your payment plan. A Chapter 13 bankruptcy can’t continue past 5 years- so if there are any unsecured debts remaining at the end of your 5 year plan, they will be wiped out.
When will my debt be discharged in a Ch 13 bk?
Your case can only be discharged once you have completed your credit counseling courses, attended your 341 Meeting of Creditors, and made the final payment in your Chapter 13 plan.