Questions About Bankruptcy?
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Chapter 13 Bankruptcy
Everett, WA Bankruptcy Attorneys
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Everett Chapter 13 Bankruptcy Lawyers
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Everett Chapter 13 bankruptcy attorneys
We know the law when it comes to this area of the Bankruptcy Code. A Chapter 13 bankruptcy is also a way of getting a fresh financial start but it involves a payment plan that lasts from three to five years. The plan is a formula for paying back what you can afford according to your best efforts.
We will work hard to develop a plan that you can afford and that wipes out the maximum amount of debt allowed under the law. This can be complicated, especially if you have significant assets or income. But we will do everything legally possible to make sure that you receive the maximum relief possible under the Federal and Washington State bankruptcy laws.
How can an Everett Chapter 13 bankruptcy help?
Chapter 13 are also great ways of stopping a foreclosure and, under certain circumstances, removing a second mortgage from your property entirely. If you can’t afford to pay everything back, the part you don’t pay back is discharged, or canceled. During your initial consultation, we will explain how this works in more detail.
In essence, however, it works like this after you file your petition. Your creditors are prohibited by law from even trying to collect a discharged debt from you again. But you also have to right to keep certain "secured" property if you can afford to keep paying on it. A perfect example of this is your home mortgage.
Similarly, if you are buying something in installments, such as a car, furniture, or some other big-ticket item, you can make these payments through a Chapter 13 plan as well. These debts take priority over other debts. You can also pay off taxes in you plan, which take priority over credit card debt, medical debt, etc.
This is one of the key ways that a Chapter 13 repayment plan can work a lot better for you than a non-bankruptcy consolidation plan because these plans usually don’t include mortgages, car payments, taxes, or payday loans, and fines, for example.
This may seem complicated. Think of a Chapter 13 bankruptcy as a type of financial "reorganization" plan that enable you to make monthly payments on property you want to keep while wiping out some or all of your unsecured debts such as credit cards, medical bills, utility bills, etc.
How exactly does it work?
A Chapter 13 is a federal court case that results in a discharge – so you know exactly when you will get your fresh financial start and no creditor can pull out of it without a valid legal reason. We have handled hundreds of complex Chapter 13 cases and are highly skilled at making sure your creditors go along with your plan.
You may also need to file if your income precludes your from filing a Chapter 7 bankruptcy.