Most people see bankruptcy as a terminal sign of financial ruin. With a Chapter 13 bankruptcy lawyer, however, Chapter 13 can be a comprehensive start to a new reorganized financial life. Chapter 13 of the Federal Bankruptcy Code provides protections for individuals seeking to reorganize all different types of debt through a customized plan for the payment of important debts, and the reduction or elimination of other less important debts, without any loss of assets.

How Does It Work?

With Chapter 13, you are given the opportunity to formulate a plan to repay your debt from personal income from any source. With the help of a Chapter 13 attorney, the petitioner submits a reorganization plan that protects assets against foreclosure or repossession and provides forgiveness or restructuring for other debts. The petitioner’s attorney creates a three to five year plan for reorganized past debt in accordance with each family’s current income and expenses. 

Who Is Eligible for Chapter 13?

Chapter 13 is only for individuals, not for businesses, but the individual can be self-employed, a business owner, or an employee.  

How Does the Filing Process Work?

Applicants should first secure a Chapter 13 lawyer, who will review and submit some of the following documents:

  • A list of creditors,
  • Disclosure of the amount and sources of income,
  • A list of property and assets,
  • A breakdown of the applicant’s living expenses, and
  • Tax information, such as tax returns, statements, and the like.

After filing, your Chapter 13 attorney submits a repayment plan that you have reviewed and approved before your case is filed.  The Chapter 13 plan calls for the full or partial repayment of an individual’s debt in order of importance through a single monthly payment after paying for regular monthly household living expenses. The debtor is not required to interact directly with his/her creditors; instead, any and all communications must and should be through an appointed mediator to handle all communications. Once a repayment plan is granted, the monthly payments are set, although acceleration of payments and early settlements are permitted.  Chapter 13 bankruptcy is a rarer form of bankruptcy than Chapter 7, but it offers the most protections for individuals and homeowners of any form of bankruptcy law.

Do you think you may benefit from Chapter 13 bankruptcy? Do you live in Connecticut? Then contact the Law Offices of Neil Crane, LLC, we are highly experienced and successful Chapter 13 bankruptcy attorneys in CT.