As of October of 2005, Chapter 13 was also changed. You can still save you home from foreclosure and your cars from repossession. But the new law has made the process more complicated. While the changes weren’t as dramatic as Chapter 7, they still may have an impact on your situation. Chapter 13 is also subject to a “means test” which measures your income and expenses on a monthly basis. The Plan pays what is left over after you deduct out all allowable expenses. Remember, our attorneys have the training and experience to determine what is an allowable expense. Don’t pay too much by going to an inexperienced bankruptcy preparer. Call us or press “Contact” above to set up an office appointment or webcam appointment. WE CAN HELP! 

       Thirteen can be your lucky number. Are you faced with foreclosure? Do you have the IRS or other creditors attempting to take your property away?
       Chapter 13 allows you to stop foreclosure, repossessions and IRS levies or garnishments. It gives you time to "catch up" your mortgage payments or delinquent taxes.
       Just like a Chapter 7, when your Chapter 13 case is filed with the federal court, the Bankruptcy Court issues an injunction stopping the attempted foreclosure, repossession or garnishment. Your phone is quiet!! No more bill collectors calling.
       In a Chapter 13, our office files a Plan with the Bankruptcy Court that sets out how creditors will be paid. In the Plan, you are allowed to resume making regular monthly mortgage payments plus pay a little extra to "catch up" the past due payments. You can pay either the fair market value or balance due on your vehicles (whichever is lower). In other words, if you are "upside down" on your car and have a high interest rate, we may be able to restructure your monthly car payment so you pay only what the car is worth and eliminate any predatory (excessively high) interest rates.
      

       Also in the Chapter 13 Plan, all unsecured debts such as medical bills, credit cards and pay day loans, are consolidated. You make one monthly payment - the amount of the payment is determined by the amount you are able to afford after paying your regular living expenses, car payments, mortgage payments, etc. Generally speaking, you are not required to pay 100% of your unsecured debt. If you make all of your Chapter 13 payments on time, the remainder of your unsecured debt is discharged just like it would be in a Chapter 7.
       A Chapter 13 Plan requires monthly payments to your creditors (often at reduced amounts) over a period of thirty six to sixty months. If you can make the payments, it is an excellent way to save your house and car and eliminate unsecured debt at the same time.
       A Chapter 13 Trustee is appointed by the Court to receive your monthly payments and make payments to your creditors according to your Chapter 13 Plan. The trustee also has the right to object to
your Plan if you are not contributing your disposable income or if you have too much property. In other words, you cannot submit a Plan that proposes to pay 20% of your unsecured debt if you own a free and clear Porsche or Cadillac.
       As you can see, a Chapter 13 is not simple. Submitting a Chapter 13 Plan that will be accepted by the Court requires good, solid professional
help.