ROANOKE CHAPTER 13 BANKRUPTCY ATTORNEYS

Why & When Chapter 13 Bankruptcy Makes Sense

Sometimes, a person or a married couple that makes sound financial decisions may encounter a serious health setback or another life event that results in substantial debt. Rebounding financially is possible, but requires more time than creditors are willing to allow.

Chapter 13 bankruptcy allows parties who have unmanageable debt and who have a steady income to create a plan to repay all or some of that debt over a period of three to five years. Unlike Chapter 7 bankruptcy, in which a party typically liquidates many of their assets in order to pay creditors, individuals who file for Chapter 13 bankruptcy can hold on to most (or even all) of their assets, including a family home if they are able to pay the monthly mortgage.

Our Chapter 13 bankruptcy lawyers in Roanoke help individuals navigate the bankruptcy process and reset their financial lives.

What Can Be Accomplished in Chapter 13 Bankruptcy?

As with other types of bankruptcy, once a person files a petition with the court, creditors are not allowed to pursue repayment. If there is an effort to foreclose on your home, it is halted. The petitioner develops a reorganization plan that explains how creditors will be repaid, but it often proposes partial repayment or, in some cases, the forgiveness of debt. The goal is to free up enough money from the petitioner’s income to allow for repayment and prevent further debt from accruing.

A bankruptcy judge must determine that the plan meets the requirements of the bankruptcy code. Creditors can object to the plan, but the court has the authority to make the final approval. Certain debts, such as child support and alimony payments, cannot be discharged or altered under any bankruptcy proceeding.

Chapter 13 bankruptcy is an option for those who earn too much money or have too much disposable income to qualify for Chapter 7 bankruptcy. Chapter 13 bankruptcy will not be possible if you have not filed state or federal taxes in recent years.

As of April 2019, Chapter 13 is only available for people who have less than $419,275 in unsecured debts (credit cards, utility bills, medical bills, etc.). A person must have less than $1,257,850 in secured debt (like a mortgage or a car loan). These limits are adjusted to reflect changes in the consumer price index.

We Are Ready to Help You Reset Your Financial Life

Every bankruptcy is different, but each one is critical to the long-term future of the petitioner. Our Roanoke Chapter 13 bankruptcy lawyers help our clients reach the best possible outcome when unmanageable debt requires filing for bankruptcy.