CHAPTER 13 BANKRUPTCY

Experienced Macomb County Bankruptcy Lawyer

While our firm only files Chapter 7, we are also versed in Chapter 13 matters. Sometimes these areas of the law blend together and necessarily involve each other. When you call the Law Offices of Jeffrey J. Randa, a Macomb County bankruptcy lawyer, we will review your situation and discuss an appropriate course of action.

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is also called a “reorganization bankruptcy” and is designed for debtors who have a regular income and can repay at least some portion of their debts through a repayment plan that addresses their financial ability to pay. Many people who make too much money to qualify for Chapter 7 bankruptcy file for Chapter 13 bankruptcy instead.

Choosing Chapter 13 Bankruptcy

While Chapter 7 is the best choice to get out of debt, some people just make or own too much to qualify for Chapter 7 bankruptcy. A Chapter 13 bankruptcy is not for everyone. Your case will be reviewed by our Macomb County bankruptcy attorney, Jeffrey J. Randa, to determine what course of action is best for you. Chapter 13 bankruptcy requires you to prove to the court that you will be capable of meeting your payment obligations once a reorganization payment plan has been established.

To qualify for Chapter 13 relief, your total debt burden cannot be too high. Under current federal law, you cannot have more than $383,175 dollars of unsecured debt or more than roughly $1.14 million dollars of secured debt. Secured debt is debt which gives a creditor the right to take back a specific item of property if you do not pay on the debt. Unsecured debt does not give the creditor the right to repossess the property that was purchased with the promissory agreement.

Before you are able to file for Chapter 13 bankruptcy, you must receive credit counseling from an agency approved by the United States trustee’s website. These agencies may charge fees for their services, but can provide free or low-cost counseling to some people on an ability-to-pay basis.

Chapter 13—From Start to Finish

Discharge plans are typically structured to provide relief when the debt has completed all payment plans – typically the court approves three- and five-year discharge schedules. After that schedule is met, the bankruptcy is complete.

What If Something Goes Wrong?

A disadvantage to Chapter 13 relief is that debtors will be required to make regular payments under the supervision of their bankruptcy trustees for the period of repayment (usually anywhere from three to five years).

When circumstances arise that complicate your ability to follow through on your Chapter 13 repayment, but which were truly unforeseen at the time the repayment plan was drafted, your bankruptcy trustee may allow you to modify your plan. In some cases the court may permit the person to discharge their debts based on hardship. In the rare case that the court will not approve a modification or discharge, there is the possibility of converting a Chapter 13 into a Chapter 7 bankruptcy.

Bankruptcy lawyer Jeffrey J. Randa has more than two decades of practice experience. He will explain your options and help guide you through the bankruptcy process every step of the way. Because we have a full time staff, your phone call will always be answered, during normal business hours, by a live person who can answer your questions right then and there. You will never have to leave a message during normal business hours. That is the kind of commitment level of service you can expect from the Law Office of Jeffrey J. Randa.