In Chapter 13 Bankruptcy, you are required to submit a plan in which you detail a budget listing your net income and monthly living expenses. Any extra income is paid to the bankruptcy trustee who then distributes money to creditors on a pro-rata basis. The plan will last for 36 to 60 months, unless your debts are fully repaid in a shorter period of time. At the end of the chapter 13 plan, any amounts still owed on your unsecured debts are foregiven.

      Chapter 13 payments can be automatically withdrawn from your bank account by the trustee, if you desire to do so. The process is somewhat longer and more involved than basic Chapter 7 cases, and hiring the right attorney will make a significant difference.

      Chapter 13 Consumer Bankruptcy cases are more complicated than Chapter 7 Bankruptcy Cases, therefore attorneys' fees are higher. As a general rule, legal fees will be approximately $2,500 (in addition to the $294 filing fees).

      Under new bankruptcy laws, individuals filing Chapter 7 or Chapter 13 must take credit counseling and financial management courses in order to file bankruptcy and have their debts discharged. These courses are offered for a nominal fee by approved providers. Most of the approved providers offer the course by telephone or over the Internet. If you do not have access to the Internet, discuss this at your initial consultation. Arrangements can be made to use one of the computers in our office.

      Payment schedules can be discussed at the initial consultation. Contact us today to make an appointment and get the process started!