Chapter 13 Bankruptcy

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Chapter 13 bankruptcy allows an individual or couple that is struggling to keep up with their monthly expenses to enter into a repayment plan that works with their budget and solves their financial problem  You can file a Chapter 13 individually whether you are married or single, or you can file together as a married couple. 

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With a Chapter 7 bankruptcy discharge, most debts are wiped out, and you don't have to repay them. So the question naturally arises as to why anyone would choose to file a Chapter 13 and repay a portion of their debts. Chapter 13 can offer many advantages over Chapter 7.  In most instances, a Chapter 13 bankruptcy case is filed to stop a foreclosure on the individual's home, or to stop a car repossession.  A Chapter 13 Plan proposes to pay any past due amounts on your mortgage or auto loans over a period of 3 to 5 years, allowing the individual to keep their house and car.  You are still responsible for resuming the "regular payments"  after filing Chapter 13.    If your car has been recently repossessed, a Chapter 13 case filing will require the lender to return the car to the individual but it must be done within certain time constraints.  

Another reason for a Chapter 13 case filing is due to significant equity in your home or other assets.   If you have too much equity in your real estate and you file a Chapter 7 petition, the Bankruptcy Judge may order the Trustee to sell your home in order to pay your creditors.  In this situation,  Chapter 13 may allow you to keep your home.  A Chapter 13 case may also be necessary because the individual has monthly income that is too high to qualify for a Chapter 7.   There is a process of assessing if your income is too high to file Chapter 7.  This is known as the "Means Test" and this will be explained to you at your first meeting with your Bankruptcy attorney.  Call our office at (804) 288-4328 to speak with a our bankruptcy lawyer about your individual case.

Trying to figure out what type of bankruptcy to file can be complicated. Speak to our Richmond bankruptcy attorney at Bruce W. White, P.C. today to discuss your unique situation. The over-the-phone consultation we provide is free, so you have nothing to lose.  Contact us today to find out more about how we can assist you and get you out from under your debt.  We will help you.