Filing Chapter 13 Bankruptcy in Denver
Chapter 13 Bankruptcy is a form of bankruptcy that allows individuals with regular income to develop a plan to repay all or part of their debts. It provides a way for debtors to reorganize their finances and create a repayment plan over a period of three to five years. This type of bankruptcy may be a suitable option for those who want to retain their assets and avoid liquidation.
Advantages of Chapter 13
Chapter 13 Bankruptcy offers several advantages for individuals seeking to reorganize their finances and repay their debts in a manageable way.
One of the main benefits is the opportunity to keep their assets, such as their home or car, while still paying off their debts.
Additionally, Chapter 13 allows for the creation of a repayment plan based on the individual’s income and expenses. This plan provides a structured approach to debt repayment, offering a sense of control and security.
Chapter 13 Bankruptcy Eligibility
To be eligible for Chapter 13 bankruptcy, individuals must meet specific criteria regarding their income and debt levels. In order to qualify, the individual’s unsecured debts can’t exceed $419,275, while their secured debts must be below $1,257,850.
Additionally, they must have a regular income and be able to develop a feasible repayment plan to pay off their debts over a period of three to five years.
How does Chapter 13 work?
Chapter 13 bankruptcy is a structured legal process that allows individuals with regular income to create a manageable repayment plan for their debts.
Under Chapter 13, the debtor proposes a repayment plan to the court, which typically lasts three to five years.
The debtor makes monthly payments to a trustee, who distributes the funds to creditors.
During this time, the debtor is protected from collection efforts and has the opportunity to catch up on missed payments.
The Chapter 13 Plan and Confirmation Hearing
At the confirmation hearing for a Chapter 13 bankruptcy case, the court reviews and evaluates the debtor’s proposed repayment plan. The purpose of this hearing is to determine whether the plan meets the requirements set forth in the bankruptcy code.
During the hearing, the court may consider factors such as the debtor’s income, expenses, and ability to make payments.
If the plan is approved, the debtor will begin making payments according to the terms outlined in the plan.
The Chapter 13 Bankruptcy Discharge
The Chapter 13 bankruptcy discharge releases the debtor from personal liability for certain debts. This means that after successfully completing a Chapter 13 repayment plan, the debtor is no longer legally obligated to repay those specific debts.
However, it’s important to note that not all debts are dischargeable under Chapter 13 bankruptcy. Debts such as child support, alimony, certain tax obligations, and student loans are generally not dischargeable.
It’s crucial for debtors to consult with a bankruptcy attorney to fully understand which debts can be discharged in their specific case.
The Chapter 13 Bankruptcy Hardship Discharge
A Chapter 13 bankruptcy hardship discharge provides relief to debtors facing extreme financial challenges. This discharge allows debtors to receive a full or partial discharge of their debts, even if they haven’t completed their repayment plan.
Here are some key points to know about the Chapter 13 hardship discharge:
- It’s granted in cases where the debtor is unable to complete their repayment plan due to circumstances beyond their control.
- Debtors must demonstrate that their failure to complete the plan is due to factors such as illness, disability, or job loss.
- The court will review the debtor’s financial situation and determine whether a hardship discharge is appropriate.
Hiring a Chapter 13 Bankruptcy Lawyer
When facing the complex and overwhelming process of filing for Chapter 13 bankruptcy, it’s highly advisable to seek the assistance of a qualified and experienced bankruptcy lawyer.
Hiring a Chapter 13 bankruptcy lawyer can provide invaluable guidance and support throughout the entire process, ensuring that all necessary paperwork is filed correctly and deadlines are met.
With their expertise, they can help individuals navigate through the intricacies of bankruptcy law and increase the chances of a successful outcome.
Call Us Today for Assistance
If you’re considering filing for Chapter 13 bankruptcy in Denver, it’s crucial to hire a knowledgeable and experienced lawyer to guide you through the process.
Here are three reasons why you should call us today for assistance:
- Our team of bankruptcy lawyers has a deep understanding of the Chapter 13 process and can help you navigate the complexities.
- We’ll work closely with you to develop a personalized repayment plan that fits your financial situation.
- Our lawyers will handle all the paperwork and negotiations with creditors, giving you peace of mind during this challenging time.
Get in Touch Today!
We want to hear from you about your Bankruptcy needs. No Bankruptcy problem in Denver is too big or too small for our experienced team! Call us or fill out our form today!