How to File Chapter 13 Bankruptcy – Raleigh NC Attorney
Chapter 13 bankruptcy is an excellent vehicle for consumers who have temporarily fallen behind with payments and need a way to catch up. Because of this, it’s often called “reorganization bankruptcy.”
Chapter 13 bankruptcy is often used by those who want to save their home, car or to pay back taxes. By filing Chapter 13, you keep your property, pay back some of your debts over time and end up with a fresh start.
How Chapter 13 Bankruptcy Works
While it sounds like a great way to start over, there are some requirements. Chapter 13 filers are put on a repayment plan, which describes in detail how and how much you will pay each of your debts. Each person’s Chapter 13 repayment plan is different.
According to the laws, some of your debts, known a priority debts, must be repaid in full. These include child support and alimony arrears, wages you owe to employees, and certain taxes. The plan also includes payments for things such as your car loan or mortgage, and it can, but not always, require some payments to debts such as credit cards and medical bills.
Your Fresh Start
The length of your repayment plan depends on how much you earn and how much you owe with a maximum period of 60 months. At the end of your plan, the rest of your debts will be wiped clean, giving you that fresh start. But you must show you are current on your domestic support obligations and you must take a budget counseling course.
Chapter 13 bankruptcy is filed by many Triangle, North Carolina residents whose income or assets are too high to qualify for Chapter 7.
While you may think it’s better to file one way or the other based on this information, it’s best to check with a bankruptcy attorney, who can give you all of the options for an educated decision.
How to File Chapter 13 Bankruptcy
We have appointment flexibility and evening hours available. You can speak directly with the attorney during your in-home consultation in Raleigh, NC. Chapter 13 lawyer Dennis Jay Sargent Jr. will provide you with the personal service that you deserve. Call The Law Office of Dennis Jay Sargent Jr, PLLC today to schedule your consultation.