Bankruptcy Attorneys in Milwaukee
Experienced Chapter 13 Bankruptcy Attorneys In Milwaukee
Contact Strouse Law if You’re Considering Filing for Chapter 13 Bankruptcy
What Exactly is Chapter 13 Bankruptcy?
A chapter 13 bankruptcy enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make instalments to creditors over three to five years.
When a person goes through Chapter 13 bankruptcy, they make a plan to repay their debts within a three-five year period and keep their property. This type of bankruptcy is also referred to as a wage earner’s plan. Because a debtor is enabled to keep the property, this can be a much more desirable alternative to Chapter 7. One of the most important types of property saved by a Chapter 13 is a person’s home. Foreclosures can be stopped through this process.
This process also enables debtors to reschedule payments on other secured debts. Rescheduling debts can help a person get more workable monthly payments. Additionally, Chapter 13 has protections for third parties who may have been cosigners for the filer’s debts. Lastly, this process includes a trustee who receives money from the debtor and distributes the funds to creditors.
Things to be Considered before filing chapter 13:
A person filing Chapter 13, must compile all of the following information for review.
- A list of all creditors and the amounts and nature of their claims;
- The source, amount, and frequency of the debtor’s income;
- A list of all of the debtor’s property; and
- A detailed list of the debtor’s monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.
There are debt ceilings that determine one’s eligibility to file Chater 13. These ceilings are adjusted periodically based on the CPI (Consumer Price Index) but in 2009 the amounts are $336,900 for unsecured debts and $1,010,650 for secured debts.
When determining what form you want to file, it is important to consult a bankruptcy attorney like Paul Strouse. He can evaluate your situation and advise you on the pros and cons of each type.
When someone completes Chapters 13, he/she cannot file again for eight years.