A Chapter 13 bankruptcy case is a series of documents filed with the US Bankruptcy Court, requesting the Court authorize you to arrange a payment plan to pay all of your bills through the Chapter 13 Trustee.
A Washington Chapter 13 bankruptcy involves you making regular payments to the Chapter 13 Trustee for a period of 3-5 years in an amount determined by your income, expenses and assets.
What are the benefits of CHAPTER 13?
Washington Chapter 13 bankruptcy provides debt relief, eliminates financial problems, stops harassment by creditors and consolidates all or most of your debt into one payment.
Chapter 13 reduces the amount of money that you pay each month and pays all your bills: credit cards, auto loans, student loans, medical bills, parking tickets, the IRS, repossessions, etc.
In most cases, Chapter 13 will STOP a mortgage foreclosure that is already in progress. It will even allow you to reinstate your driver's license if suspended due to too many parking tickets or being in an accident without insurance.
Like Chapter 7, Chapter 13 bankruptcy provides the same protection against creditor harassment, lawsuits and all collection efforts under the "Automatic Stay"
Who can file CHAPTER 13 Bankruptcy?
To be eligible to file a Chapter 13 in Washington State, you need to be employed or have other regular monthly income, such as social security benefits or rental income from real estate.
You can file a Chapter 13 bankruptcy even if you have previously filed a Chapter 13 or a Chapter 7, as long as your previous case is no longer pending.
What happens after the petition is filed?
After your petition is filed with the Court, we will send you a copy of the "Automatic Stay", and a letter advising you when and where to start your Chapter 13 payments.
The payments can be deducted from your paycheck if you so desire.
The payments are sent to the Court-appointed Trustee. The Trustee will distribute your payments to your creditors each month. These payments begin upon the filing of your Chapter 13 bankruptcy case.
About four weeks after your case is filed, you will be required to attend a short meeting of creditors at the Court or Trustee's office. We will appear with you at this meeting, where you will be asked some brief questions concerning your income and expenses.
A few weeks after the meeting, the Court may approve your plan and the Trustee will start paying your creditors.
When your plan has been completed, your debts will have been paid in full and you will receive a Court-ordered discharge of your debts.
How much do I pay, and for how long?
In Washington Chapter 13 bankruptcy the amount of the plan payments and the length of the plan will depend upon your current income and current expenses, the types of debts that you have, and the amounts that you owe.
You will need our legal advice to determine the monthly payments and the length of the plan.
How do I get started on Chapter 13?
Contact Attorney Bankruptcy Services today to discuss your situation to determine whether Chapter 13 bankruptcy may help resolve your debt problems and save your valuable property and assets.
To receive a free consultation regarding your (or your friend or family member’s) debt problems, please contact us today at (206) 442-9500.