Frequently Asked Questions, Chapter 13 Bankruptcy

For some people, bankruptcy may be the only option for managing debts, and one way of determining the best course forward is by enlisting help from a bankruptcy lawyer New Haven, CT people rely on. Bankruptcy is not a decision that should be taken lightly, but it may be the best option for those with debts that are impossible to get out from underneath. Those who choose bankruptcy will be left with several questions and concerns over what comes next, how to initiate the process, and what assets they can keep. Our team from Eric Lindh Foster Law, LLC can help clients by answering questions and pursuing the process. 

What is Chapter 13 bankruptcy?

Those considering bankruptcy will have a few options to choose from; however, for some, the type of chapter they file for will be contingent upon whether they are eligible and the assets they would like to keep. Chapter 13 bankruptcy is commonly referred to as the wage earner’s plan and is a viable option for those who do not qualify for Chapter 7 bankruptcy. Chapter 13 bankruptcy is appropriate for those who make too much money to pass the means test required to qualify for Chapter 7 and can be a way for filers to keep sizeable assets such as their homes or vehicles. Typically the process is initiated when the filers attend bankruptcy counseling and file the initial paperwork. With assistance from a lawyer and the appointed trustee, a repayment plan will be developed that will be repaid over 3-5 years. 

What possessions can be kept when choosing Chapter 13?

When filing for bankruptcy, some assets can be protected from creditors. Certain exemptions are allowed throughout the process so that debtors can keep certain property, personal items, household goods, and assets. One key difference between Chapter 7 and Chapter 13 is that when choosing Chapter 13, nonexempt assets can be retained because they will be covered through the repayment plan. 

What is the 341 meeting of the creditors?

The 341 meeting of the creditors is a necessary process that those filing for bankruptcy must undergo before finalizing their bankruptcy plan. Creditors and even the public can attend a meeting of the creditors. At this meeting, bankruptcy paperwork is validated, the repayment plan is reviewed, and questions can be asked. Most people dread the meeting of the creditors; coming face to face with those you owe debts to can be difficult. However, it’s important to note that creditors do not always attend in most situations. Typically bankruptcy filers are aware of when a creditor will be in attendance. These meetings can last anywhere from a few minutes to an hour. When working with a bankruptcy lawyer New Haven, CT relies on; clients can expect to be fully prepared for the meeting. 

When is Chapter 13 bankruptcy resolved?

Typically the process from filing the initial paperwork to the meeting of the creditors takes approximately 90 days to resolve. However, Chapter 13 bankruptcy is not officially discharged until the repayment plan is complete, which can take anywhere from 3-5 years. 

How much does Chapter 13 bankruptcy cost?

The cost of Chapter 13 bankruptcy varies, but the filing fee cost is $313. Chapter 13 can be a relatively straightforward process, but for many, the help of a lawyer is highly advantageous. While hiring a lawyer does come at a cost to the filer, they can not only help to navigate the process but can strategize a plan for how the filer can keep the assets they would like to retain. Much of the time, the cost of a lawyer pays off because of this factor. Additionally, they can ensure the process is completed correctly and that minor mistakes do not hold up the process. 

Schedule a consultation today to learn more about how Eric Lindh Foster Law, LLC can help with bankruptcy proceedings!