Abogados de Chapter 13 Bankruptcy

Understanding Chapter 13 Bankruptcy Lawyers in the U.S.

What Chapter 13 Bankruptcy Covers

Chapter 13 Bankruptcy is a legal process that allows individuals with a steady income to reorganize their debt. Unlike Chapter 7, which involves liquidating assets, Chapter 13 lets you keep your property while catching up on overdue payments over a period of three to five years. This type of bankruptcy is often referred to as a "wage earner's plan" because it requires a regular income to qualify.

When to Hire a Chapter 13 Bankruptcy Lawyer

• You're struggling to manage your debt but have a regular income.
• You want to stop foreclosure on your home.
• You're facing significant medical bills or credit card debt.
• You need help negotiating with creditors.
• You want to consolidate your debts into a manageable payment plan.

How the Chapter 13 Process Works

The process begins with filing a petition in the local bankruptcy court. You'll need to submit a proposed repayment plan that outlines how you intend to pay back your debts. Once filed, an automatic stay goes into effect, stopping most collection actions against you. A trustee will be appointed to oversee your case and facilitate payments to creditors. The repayment plan must be approved by the court, and once completed, any remaining unsecured debt may be discharged.

How Compensation for Chapter 13 Lawyers is Calculated

• Flat fees: Many lawyers charge a flat fee for handling Chapter 13 cases, which covers the entire process.
• Hourly rates: Some attorneys may charge by the hour, especially if your case is complex.
• Retainer fees: An upfront fee that is applied toward your total legal costs.
• Payment plans: Many lawyers offer flexible payment options to make their services more accessible.

Frequently Asked Questions

What happens if I miss a payment in my Chapter 13 plan?

Missing a payment can jeopardize your bankruptcy plan. However, if you encounter financial difficulties, it's important to contact your lawyer immediately. They may help you modify the plan or negotiate with the trustee to prevent dismissal of your case.

How long does a Chapter 13 bankruptcy stay on my credit report?

A Chapter 13 bankruptcy can remain on your credit report for up to seven years from the date of filing. However, as you make consistent payments and reduce your debt, you may see gradual improvements in your credit score.