Filing Chapter 13 Bankruptcy in Des Moines
Chapter 13 bankruptcy is a legal process that enables individuals to restructure their debts and establish a repayment plan. It allows them to keep their assets while making affordable monthly payments to creditors over a specific period.
This form of bankruptcy provides a solution for people who have a regular income but are struggling to meet their financial obligations. It offers a way to regain control of their finances and work towards a debt-free future.
Advantages of Chapter 13
One major advantage of filing for Chapter 13 bankruptcy is the opportunity to retain your assets while repaying your debts. This means that you can keep your home, car, and other valuable possessions, unlike in Chapter 7 bankruptcy where you may have to sell them to pay off your creditors.
Chapter 13 allows you to create a manageable repayment plan, giving you a chance to regain financial stability and keep your belongings.
Chapter 13 Bankruptcy Eligibility
To be eligible for Chapter 13 bankruptcy, individuals must meet certain financial criteria and complete credit counseling. Here are four key eligibility requirements for Chapter 13 bankruptcy:
- Regular income: Individuals must have a steady source of income to make the required monthly payments under the repayment plan.
- Debt limit: There’s a maximum amount of secured and unsecured debt that an individual can have to qualify for Chapter 13 bankruptcy.
- Priority debts: Certain debts, such as taxes and child support, must be paid in full through the repayment plan.
- Disposable income: Individuals must have enough disposable income after deducting necessary expenses to make the monthly plan payments.
Meeting these criteria is essential to qualify for Chapter 13 bankruptcy and obtain the benefits it offers.
How does Chapter 13 work?
After meeting the eligibility requirements for Chapter 13 bankruptcy, individuals can begin to understand how this type of bankruptcy works.
Chapter 13 allows debtors to create a repayment plan to pay off their debts over a period of three to five years.
The debtor makes monthly payments to a bankruptcy trustee, who then distributes the funds to the creditors.
This allows the debtor to keep their assets while still addressing their financial obligations.
The Chapter 13 Plan and Confirmation Hearing
During the Chapter 13 plan and confirmation hearing, the debtor presents their proposed repayment plan to the bankruptcy court for approval. Here are some key points to understand about this process:
- The repayment plan outlines how the debtor will pay off their debts over a period of three to five years.
- The plan must prioritize certain debts, such as mortgage or car payments, while also providing for the payment of other creditors.
- The debtor’s disposable income is used to determine the amount to be paid to creditors each month.
- Once the plan is presented, the court will review it and hold a confirmation hearing to determine if it meets the necessary requirements for approval.
The Chapter 13 Bankruptcy Discharge
The Chapter 13 bankruptcy discharge is the final step in the process, providing debtors with relief from their remaining eligible debts.
Once the debtor has completed their Chapter 13 repayment plan, the court will grant a discharge order.
This order releases the debtor from their obligation to repay the remaining debts included in the plan.
It’s important to note that not all debts are eligible for discharge, such as certain tax obligations and child support payments.
The Chapter 13 Bankruptcy Hardship Discharge
Once the debtor has successfully completed their Chapter 13 repayment plan, they may be eligible for a hardship discharge in order to alleviate their financial burden.
Here are four key points to know about the Chapter 13 bankruptcy hardship discharge:
- A hardship discharge can be granted if the debtor experiences unforeseen circumstances that make it impossible to continue the repayment plan.
- Examples of qualifying hardships include serious illness, disability, or the debtor’s inability to earn a sufficient income.
- The court will evaluate the debtor’s good faith efforts to repay their debts before considering a hardship discharge.
- Unlike a regular discharge, a hardship discharge may not wipe out all debts but can provide relief by reducing or eliminating certain obligations.
Hiring a Chapter 13 Bankruptcy Lawyer
When facing the complexities of Chapter 13 bankruptcy, it’s crucial to have the guidance and expertise of a qualified lawyer.
Hiring a Chapter 13 bankruptcy lawyer can help individuals navigate the legal process, understand their rights and options, and achieve the best possible outcome for their financial situation.
With their knowledge and experience in bankruptcy law, these lawyers can provide invaluable assistance and support throughout the entire process.
Call Us Today for Assistance
If you’re considering filing for Chapter 13 bankruptcy in Des Moines, it’s essential to seek the assistance of a qualified bankruptcy lawyer today.
Here are four reasons why hiring a bankruptcy lawyer is crucial for a successful bankruptcy filing:
- Expertise: A bankruptcy lawyer has specialized knowledge and experience in navigating the complex bankruptcy laws and regulations.
- Guidance: A lawyer can provide valuable guidance and advice throughout the bankruptcy process, ensuring you make informed decisions.
- Protection: A lawyer can protect your rights and interests, dealing with creditors and other parties on your behalf.
- Peace of mind: By hiring a bankruptcy lawyer, you can have peace of mind knowing that your case is in capable hands.
Don’t hesitate to call us today to get the assistance you need for a smooth Chapter 13 bankruptcy filing.
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