Chapter 13 Bankruptcy Attorney in Charlotte, NC

What Is Chapter 13 Bankruptcy?

Chapter 13 is the type of bankruptcy used for individual debt adjustment. Under this type of bankruptcy, the Bankruptcy Code allows eligible persons to keep their property and assets by gradually paying off their debts. This is also known as reorganization bankruptcy, since an individual ends up paying back most of his or her debts. The payment plan typically spans over the course of three to five years. After the payment plan has been concluded, the remaining debts are discharged. You should contact an experienced Chapter 13 Bankruptcy Attorney in Charlotte.

The debts that are eligible for the payment plan in Chapter 13 include secured claims, unsecured priority claims and general unsecured claims. A secured debt allows the creditor to take a person’s property if they don’t repay the debt. An unsecured debt, on the other hand, doesn’t allow the creditor to do this, as in the case of credit cards or medical bills. The priority debts are debts in which the creditor can’t collect on a debtor’s assets, but bankruptcy law gives them special rights so as to ensure that they get their money. These have to be paid back in full, unless the creditor otherwise states.

The debtor that chooses to file for Chapter 13 is entitled to discharge of debts after all payments under the plan are made. If you are filing for this type of bankruptcy, then it is very important to contact an experienced Charlotte bankruptcy attorney from the Law Office of Jack G. Lezman, PLLC so our legal team can advise you on the best course of action to pursue for your individual case.

Am I Eligible?

Because Chapter 13 bankruptcy entails repaying your debts from your income, then the court will require that you prove that you can meet your payments. Incomes that are irregular or too low will most likely not be eligible. In addition, if a person’s total debt burden is too high, then they may not able to file for Chapter 13 bankruptcy. The debtor’s secured debts need to be under $1,010,650 and unsecured need to be under $336,900. If you want to see if you qualify for Chapter 13 bankruptcy, then an attorney from our firm can help you take a means test, which will assess your specific situation.

What Happens if I Can’t Make My Payments?

If you have already filed for Chapter 13 bankruptcy and find that you can’t keep up with your payments, then the court will most likely reassess your plan. The bankruptcy trustee that is overseeing your case may choose to modify the payment plan, or even discharge your debts on the basis of hardship.

If the courts don’t choose to let you change your plan, then you may want to try and convert your case to a Chapter 7 bankruptcy plan. In addition, you could also ask the courts to dismiss your case; however, you would still owe your debt plus the interest that was not incurred while your case was pending.

How a bankruptcy attorney in Charlotte can help you!

The laws pertaining to Chapter 13 bankruptcy can be quite complex and often changes. It is important to obtain strong legal counsel from a Charlotte bankruptcy lawyer as you pursue this type of bankruptcy. A significant number of individuals who have chosen to file for bankruptcy can benefit from a Chapter 13. This type of bankruptcy allows an individual to establish a payment plan to repay the debts they owe in an affordable manner.

When you work with our firm, our legal team can provide you with comprehensive information concerning your debt and the proper method for your situation. Even if you don’t know where to start, we can help you obtain the necessary information regarding your property and other parts of your financial situation.

Contact a Bankruptcy Attorney in Charlotte from our firm as soon as possible so we can make sure that your future is protected!

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Call (704) 419-8248 or email us below, and our Charlotte bankruptcy and SSD attorney can discuss your case with you in a free consultation.

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