Chapter 13 Bankruptcy
In Iron Utah

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When you are in stressful financial trouble and think that you can never get away from it, filing Chapter 13 bankruptcy under Iron Utah’s Bankruptcy Code may be the best solution. Although there are other types of bankruptcy along with Chapter 13 like Chapter 7, which are the most common, we will be discussing Chapter 13 in this post for you to determine if you are qualified or not.

Generally, this type of case is applicable to debtors who have valuable assets like a house, which is not totally covered by exemptions, and wish to secure it. In addition, since you are required to pay on a monthly basis, you must have a steady source of income.

What is Chapter 13 Bankruptcy in Iron Utah?

Chapter 13 enables qualified individuals or small business owners to retain their assets and consolidate a portion or all of their debt, which is payable in three to five years. What we can do as bankruptcy lawyers is to formulate with you the plan repayment.

As a debtor, you must make a single monthly plan payment to the bankruptcy trustee within the duration of the plan, and then the latter will distribute the plan payment among all your creditors according to priorities and amounts stated in the plan. Remember that some financial obligations such as home mortgages must be paid outside of the plan. But with the assistance of an excellent lawyer, securing your home is possible.

How much is the Plan Payment?

You might be wondering how much you should pay for the plan payment. Is there an amount that the court assigns?
The amount should be equal to all the surplus income you and your spouse make, if you are married. Your surplus income is the excess amount that is not reasonably necessary to support your dependents.

If your current budget shows that you can pay more than the amount, the trustee will find ways to have your payment increased. This is the reason why you need a bankruptcy attorney because assessing the amount you will pay is tricky if you have less knowledge about the law. As soon as you step in our office for an initial consultation, we will calculate this immediately before filing your case.

Unlike Chapter 7 that does not free you from your debts instantly, Chapter 13 protects you from garnishments, lawsuits, non-stop phone calls, and other creditors’ actions while the plan is in effect. And at the end of three or five years, you are discharged from all dischargeable unsecured debts, no matter how much your creditors have received from your payment plan.

Benefits of Chapter 13 Bankruptcy in Iron Utah

Chapter 13 bankruptcy can be filed without the assistance of a lawyer. But is it worth it? Some people think that hiring a bankruptcy professional saves them from charges. Believe it or not, it actually cuts them more spending. Moreover, the plan repayment is determined by the court and it will attempt to find if you are just trying to delay or defraud your creditors. In this case, you need an experienced attorney.

So, what are the benefits of filing Chapter 13 bankruptcy?

Protection From Creditors

By filing this case, you are protected from creditors’ actions such as lawsuits. You are also allowed to keep your real estate and personal property while providing you opportunities to repay your debts through plan repayments.
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Stops Foreclosure Sale, Allows You To Modify Or Catch Up On Your Home Mortgage

If you are behind your home mortgage, arrears could be cured within this case within the period of three to five years, as well as negotiate a mortgage modification.

Catch Up On Overdue Car Payments

Your car loan can be paid through Chapter 13 Plans along with past due amounts. In this case, you can also reverse or prevent repossession. In addition, interest rates are also lowered.
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Ceases Interests And Penalties On Tax Debt

Your attorney plays a vital role in some tax repayments through eliminating interest payments.
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Discharges Unsecured Debts

Debts such as credit cards, payday loans, medical bills, certain taxes, and other debts can be discharged under the Chapter 13 Plan through consolidation and repayment of 0 to 100% of the debt owed.
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Eliminates Second Mortgages And Other Liens

It is possible to get rid of junior liens on your real property such as second mortgages, or also known as “lien strip.” If the fair market value of your property is lower than the total amount owed on the first mortgage, you can eliminate the security interest to any junior lienholders. Under this circumstance, you treat them as general unsecured creditors in your plan, allowing you to possibly pay them less than 100%.
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