Chapter 13 Bankruptcy
Chapter 13 bankruptcy is commonly referred to as a “wage earner’s plan.” This chapter of bankruptcy allows a debtor to develop a plan to restructure and repay his or her debts. The repayment plan is usually made for a period of three to five years, and should satisfy all the debts when completed. If the debtor’s income is less than the applicable state median, the plan is usually for three years. Conversely, if the debtor’s income is greater than the applicable state medium the court may approve a plan for longer than three years. However, no plan can be implemented for more than five years.
Can Creditors Contact if I file Chapter 13?
In short, no. Creditors usually have to stop their collection efforts once the debtor has filed for bankruptcy. This can be a benefit for the debtors, as they can rest easy knowing that they likely will not be the recipient of seemingly harassing phone calls from companies looking to collect on credit cards or loans.
How Do I Know if I am Eligible for Chapter 13 Bankruptcy?
Any individual who is operating an unincorporated business, even if they are self-employed, may be eligible for chapter 13 bankruptcy. However, the individual must have unsecured debts that are less than $394,725 and secured debts less than $1,184,200. A corporation or a partnership may be eligible for chapter 13 bankruptcy.
It is important that you consult with an experienced bankruptcy attorney who can help you determine if bankruptcy is right for you and help you through the process. Contact our firm today for strong legal representation.
The Law Offices of George Poulos is an experienced Workers’ Compensation, personal injury, bankruptcy, and Social Security Disability law firm with offices in Queens and the Bronx. If you require strong legal representation, contact our firm today to schedule a free consultation.