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Learn About Chapter 13
(Number One
Way To Catch-Up/Consolidate Debts) |
Links to
topics on this issue:
Learn About Chapter 13
Chapter
13 Compared To Traditional Debt Consolidations
Seven
(7) Main Reasons To File Chapter 13
Are
You Eligible for Chapter 13?
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Now Let's
Learn About Chapter 13Most of the Bankruptcy laws are set forth
in Title 11 of the United States Code. Title
11 is divided into chapters. For instance,
there is Chapter 7 (sometimes called
"total bankruptcy", but that term is
misleading), Chapter 13 (sometimes loosely
referred to as the "bill
consolidation" version of bankruptcy or a
"wage earner plan"), Chapter 12
(bankruptcy for the family farmer), and
Chapter 11 (bankruptcy for huge corporations).
The 2 chapters available to most people in
need of help are Chapter 7 and Chapter 13.
Let's talk about Chapter 13.
IMPORTANT NOTE: Hopefully, you have already
read about
Chapter
7. How's lets talk about
Chapter 13. The best way to do it....is by
comparison to Chapter 7. If you have NOT yet
read the section entitled "Learn About
Chapter 7"….your best bet is to stop
here and go back and read that section.
Then....after reading that section....come
back here. Here are the topics we will
discuss.
Filing bankruptcy under Chapter 13 can help
you:
- Get rid of certain types of
debt...permanently.
Do things that cannot be accomplished
by filing under Chapter 7.
Get rid of "debt" stress
and worry.
Keep and protect property you want to
keep.
Get out from under debt on property
you are willing to say "goodbye"
to.
Stop Lawsuits, Creditor Harassment
and Garnishments.
Free up income for your family.
Get into a position to earn more
money and save.
Get started re-building your credit.
Important Disclaimer.
We will also try to answer these 2
important questions:
- What does it cost to file under
Chapter 13?
- How fast can I get relief?
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================
(1) Gets rid of certain types of
debt...permanently. This is huge. There is
nothing else like it in the world. Chapter
13....like Chapter 7.... gives you the right to
get rid of most of the common types of unsecured
debts, like credit card debt, medical bills, bank
loans, finance company loans, and credit union
loans. It can also get rid of unsecured debts left
over from a divorce, a failed business, personal
guarantees, trade creditors, and even certain
income taxes over 3 years old....and the list goes
on.
Chapter 7 generally lets you
get rid of such debts completely. In Chapter
13....which varies a fair amount from State to
State.... may or may not require you to pay a portion of
this debt. It depends. Under the
new...improved...bankruptcy law, we have found
that many clients qualify to pay zero cents on
the dollar, just like in Chapter 7. Turns
out the new "Means Test" ain't all that mean,
and that's good news for good, hard working
Americans all over the place. Disclaimer:
Results will vary depending on assets, debts,
income and expenses, and not all clients will
qualify to pay zero on their unsecured debts.
Gets rid of debt...Yes.
But it can get rid of all that accumulating
interest, too. Ah....yes...don't forget the
interest. Generally....just like Chapter 7....in
Chapter 13, when you get rid of debt....you also
get rid of the obligation to pay interest on that
debt....and this is a huge plus. You know....from
your own experience....how much of your payments
goes just to paying interest...and interest....and
interest. Not only do you get rid of the debt. You
also get rid of all that interest. Where
else....except under the bankruptcy laws....can
you do that? The answer is...."No where
else".
(2) Doing things that cannot be
accomplished by filing under Chapter 7:
This section would be better
named: "Reasons to file Chapter 13 instead
of Chapter 7."
Why....you might ask...would
anyone in his or her right mind file a bankruptcy
under Chapter 13 which requires you to pay back a
part of the debt, when you can file Chapter 7 and
get released from all of it? That's a good
question and here are 9 good answers:
- Chapter 13 may require less money
"up-front": Chapter 13 does some
things you can't do in Chapter 7. As you know
from reading about Chapter 7, all the attorney
fees for the filing have to be paid "up front".
Not in Chapter 13. In Chapter 13, you are
required to make monthly payments to a Chapter
13 Trustee....a bookkeeper, so to speak, for the
Court who handles your case and
takes your payments and....in accordance with certain
rules....distributes money to your creditors.
In Chapter 13, you attorney can get paid some
of his fees through your Chapter 13 plan. This way, you can get your
bankruptcy case filed with less money
up-front.
- You can get rid of a broader range of
debts in Chapter 13 than Chapter 7:
Sometimes, depending upon the type of debts you
have, the Chapter 13 discharge can make all the
difference. However, under the new bankruptcy
law, the types of debts that were once only
dischargeable in a Chapter 13 have been greatly
reduced.
- You can use Chapter 13 to
"catch-up" on a car, truck or house
loan: You can't do this in Chapter 7. In
Chapter 13, the amount needed to catch up
these types of loans is factored into your
Chapter 13 plan, to be paid out the creditor
over a series of months or years, depending on
how the Judges in your neck-of-the-woods
interpret the law. For example....in the
Northern District of Mississippi....this
type of arrearage is generally set up to be
paid back over the entire duration of the
Chapter 13 plan. Chapter 13 plans generally
range from 3 to 5 years in duration....and as
you can see....this gives you plenty of time
to bring these debts current. So....when you
can't catch up on these debts before filing
bankruptcy....but you want to keep these kinds
of property....Chapter 13 may be the way to
go.
- You can file bankruptcy and still keep
property, even if you don't have enough
"exemptions" to cover it:
Remember our discussion of
"exemptions" back in Chapter 7. The
same exemptions apply in Chapter 13. The
problem comes when you have more property than
you can protect with available exemptions. So
what do you do? Chapter 13 may be the answer.
Under Chapter 13 of the Bankruptcy Code, you
can factor into your Chapter 13 plan payment
enough money to pay over to the creditors this
extra equity, which....in the trade....we call
the "equity above exemptions" or
"EAE", and you can do so over the
entire length of your Chapter 13 plan. This
lets you file bankruptcy and still keep this
valuable property.
- Chapter 13 stops foreclosures and
repossessions: As I mentioned, you can
catch up car, truck, and house payments using
Chapter 13. However, this wouldn't be of any
help if....in the meantime....the affected
creditor was allowed to continue on with
efforts to foreclose on your house or
repossess you car or truck. As long as you
make your required Chapter 13 plan payments,
these creditors are stopped cold and kept
under control for the entire time you are in
Chapter 13.
- Sometimes, you just have too much income
to file Chapter 7: First...you might
ask...why in the world would someone with lots
of income be filing bankruptcy. The answer is
that sometimes people mismanage the income
they have. Sometimes...emergencies suck away
too much income. Sometimes...the extra income
is only newly acquired...as where you were out
of work for a period of time. Those people who
are able to hold off the creditors long enough
to earn enough income to satisfy all the
creditors usually don't file bankruptcy. For
the rest...filing bankruptcy may be the only
solution. The problem is that you are not
eligible to file bankruptcy under Chapter 7 if
you have too much income. Whether or not you
have too much income to file Chapter 7 varies
from Bankruptcy Court to Bankruptcy Court,
depending upon the interpretation of different
Bankruptcy Court Judges. There is no clear
"cut and dried" rule to determine
this, but experienced bankruptcy attorneys
know what will and will NOT fly with their
local Bankruptcy Court Judge.
Generally, "too much income"
means that you have more monthly
"after-tax" income than you have
"reasonable or necessary" monthly
expenses. Determining what are
"reasonable or necessary" expenses
is where the Judge comes in. Assuming this to
be the case....in accordance with the U.S.
Bankruptcy Code, section 11 U.S.C.
707(b)....you are not allowed to file a
Chapter 7 case because it would be considered
a "substantial abuse" of the
Bankruptcy Code.
So what do you do? You have 2 choices:
Either you do NOT file bankruptcy or you file
under Chapter 13. Under Chapter 13, the extra
income (in the trade...this is called
"disposable income") is factored
into your Chapter 13 plan...at least for the
first 3 years of your Chapter 13 plan. If you
need to file bankruptcy...and have extra
income....Chapter 13 gives you a way to do so.
- You can "strip off" a totally
unsecured mortgage: You can't do this in
Chapter 7, but generally, this is allowed in
Chapter 13. This can be a huge benefit. Let's
say....for example....that your house is worth
$100,000, and that the payoff on your first
mortgage is $105,000. And, let's say you have
a second mortgage on your house for $20,000.
In Chapter 13, you can file papers to
"strip off" the second mortgage. The
only requirement is that there is not a single
dollar of house value to "secure" it
and that you stay in your Chapter 13 case to
completion. The benefit of this
"stripping" is obvious. In our
example...it not only gets rid of the mortgage
debt....but equally important...it takes away
the need to make monthly payments on this
mortgage.
- The "Cram Down" Benefit of a
Chapter 13 Bankruptcy: A major benefit of
Chapter 13 bankruptcy is that it allows you to
lower the amount that you owe on many
"secured" debts. The ability to
lower the amount is called "cram
down". This wonderful benefit is NOT
available in Chapter 7, and it can save you a
ton of money. It works like this:
Secured debts are those debts where you
have pledged as collateral things that you
own, such as a car, truck, furniture, business
equipment, or house. When you finance a car ,
truck or furniture, you typically make a
number of monthly payments to repay the loan.
In most cases, the value of the item you are
financing decreases faster than the loan is
being repaid. Most of the time, especially
during the earlier years of your loan, the
value of the collateral you pledged will be
less than the payoff balance of the loan. This
is known as being "upside down" on
your loan.
The "cram down" provisions in
Chapter 13 of the Bankruptcy Code allow you to
pay off these types of debts for less than
what you owe. Instead of paying what you owe,
you are allowed to pay only the value of the
items serving as collateral.
This can save a boatload of money, and
allow you to get out from under some really
"upside down" situations, while
still keeping the property involved. For
instance, let's say you owe $10,000 on a car
that is only worth $5,000. Under Chapter 13,
you are allowed to get away with only paying
the creditor the $5,000 value of the
car....thereby "cramming down" on
the creditor. In our example, the other $5,000
of the $10,000 debt is treated as an
"unsecured" debt to be paid at
pennies-on-the-dollar. You can't do that
outside of bankruptcy. The only catch is
that the car has to be one purchased at
least 2 1/2 years ago.
New Law change: The new bankruptcy law
puts some limitations on your ability to achieve
"cram down" on motor vehicles bought within 2 1/2
years before you file bankruptcy and upon other
property bought within 1 year.
Can I "cram down" on my house
mortgage? In most cases, the answer is
"No". Bankruptcy law is good....but
not that good.
- You Can Reduce The Interest Rates On Most
Secured Debts. Another great benefit of
Chapter 13 bankruptcy is that you can reduce
the interest rate that you have to pay on most
secured debts (however....once again....not
with respect to the mortgage on your
residence.). Many people have car or furniture
loans where they agreed to pay interest at the
rates as high as 15 to 30 percent, and
sometimes even more. In a Chapter 13
bankruptcy...using Mississippi as an
example...you only have to pay interest at the
prime rate, plus 1
to 5 percent. Currently, the interest
rate is about 12%. What a savings when
you consider that many secured loans charge you
interest of 18% to 30% or more. The interest rate will vary
depending on the jurisdiction you live in.
But...going from 18 to 30 percent
"outside" bankruptcy to about 12% "inside"
bankruptcy can translate into huge savings.
Just like with "cram down",
lowering the interest rate on loans can save a
boatload of money, and this makes things more
affordable and quicker to pay off.
Once again...however....this benefit is NOT
available in Chapter 7. Filing bankruptcy
under Chapter 7 does some really great things.
When it works...Chapter 7 is a great way to
wash away credit card and medical debts....but
Chapter 7 has no effect on your interest rates
on secured loans?
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( 3) Gets rid of "debt" stress
and worry.
Getting rid of certain types
of unsecured debts is important, but it's mostly
important because it helps you achieve an even
more important goal. It gets rid of some...and
hopefully all...of the stress and worry that comes
with having to deal....day in, day out.... with
crippling amounts of debt, not to mention that
most clients save hundred of dollars per month in
total monthly payments.
I have found that....until
people find out how bankruptcy really
works...people believe there is nothing they can
do to get rid of debt...that they will be in debt
for the rest of their lives...that there is no
hope....that with so much debt, their families
will have to go without...that with so much debt,
they will never get ahead.....and that they will
never be able to buy anything again.
What a relief they feel when
they come into my office and find out how
bankruptcy really works. I cannot describe what a
surprise this is for many people. For many...it
seems like a dream come true. And...it is....a
dream come true, thanks to the wisdom of your
United States Congress...which created the
Bankruptcy Laws.
I have found that people
generally don't file bankruptcy to get rid of
debt. They file bankruptcy to get rid of the
stress...the stress of dealing with debt...that
hopeless feeling of dealing with something that
has gotten out of control....something that has
taken over their lives and all their waking
moments.
The look on many people's
faces when they find out how much debt and stress
they can get rid by filing bankruptcy is almost
comical. People deep in debt are so used to
feeling stressed out...so used to worrying and
feeling helpless....that they don't know how to
act when they find out...for the first time....
how much debt bankruptcy can actually get rid of.
When we tell them how much debt they can get rid
of ....permanently....and how easy it is to file
bankruptcy....it's like there is a heavy anvil
being lifted from their chests. It doesn't seem
normal to them. We have to keep saying words to
the effect that "It's true. Believe it or
not....it's true. Bankruptcy really does
this." For a while, they just go on saying
things like "But I thought" this...or
"But I thought" that, and we have to
keep reassuring them that what we are telling them
is true.
Giving people news that
brings this kind of relief...to people who have
been struggling with overwhelming debt for months
and years....is what its all about for
lawyers....like me.
This benefit of filing
bankruptcy is much the same in Chapter 13.... as
in Chapter 7.
(4) Keep and protect property you want to
keep. For whatever reason, people think
that if they file bankruptcy, they will lose
everything that they have. Nothing could be
further from the truth. Most of our clients keep
almost everything they own...and lost nothing. Why?
Because there are these things called
"exemptions". We talked about them in
the section entitled: "Learn About Chapter
7.". The same exemptions apply to help
protect property in cases filed under Chapter 13.
In the occasional case where it looks like a
client has too much "stuff" to cover
with exemptions...that is where Chapter 13 comes
to the rescue. In Chapter 13, people can keep all
their stuff; they just have to pay in a little
more money....as mentioned above.
Using Mississippi as an
example....there are exemptions to cover lots of
things including houses, mobile homes, land, cars,
trucks, household goods and furniture, wages, cash
on hand, certain personal injury claims and worker's
compensation claims, tools of trade, retirement
plans, IRA's, and the list goes on.
Just like with Chapter
7....a big part of the process of analyzing a
potential client's case...is making a
determination as to what the client's property is
worth, so that we can figure out whether there are
sufficient available exemptions to protect all the
property. That is, we have to put a value on each
piece of property. This is a fairly
complicated....but extremely important.... part of
the process. The problem is....there are values
and then there are values. For purposes of
applying "exemptions"....it is important
to determine what we call the
"liquidation" value as opposed to the
listing value, the value to the client, what the
client paid for the property, what the client
would like the property to be worth, etc., etc.
For purposes of applying the "cram down"
provisions...on the other hand...we have to
determine "replacement" value.
Filing bankruptcy does NOT
mean you get to keep the property for free. If
there is a lien against the property.....as in the
example above with the house....the creditor
holding the lien still needs to be paid. In our
house example above, equity is no problem, but the
client....if he or she wants to keep the
house....would still have to keep current on the
$105,000 mortgage.
The same would apply for a
car loan. Generally, when you get a car loan, you
give the lender a lien against your car title.
However, for purposes of Chapter 13....there is
one absolutely huge difference....and it has got a
name....and its name is called "cram
down".
The All Powerful "Cram
Down" Provision: Cram down is a right you
have whenever you file a case under Chapter 13 of
the Bankruptcy Code....and it works like this. It
allows you to pay less than what you owe on
certain cars,
trucks, business equipment, and mobile
homes....assuming that the value of the items is
less than the amount owed. This is a very
complicated issue and subject to great variance in
interpretation from Bankruptcy Court to Bankruptcy
Court....but to use the Northern District of
Mississippi as an example....it works like this: Say
you have a car (one that was bought more than 2
1/2 years ago) that....according to the NADA
"blue" book has a "retail"
NADA value of $10,000....but that....for whatever
reason....you owe $15,000 on it. Chapter 13 allows
you to "cram down" the creditor...which
means you can set up your Chapter 13 plan to pay
the creditor $10,000 (the value of the car) rather
than $15,000 (the amount owed). This can translate
into huge savings for you....in addition to the
other benefits of filing bankruptcy...and can make
all the difference between your ending up with a
Chapter 13 plan you can afford and one that you
cannot.
(5) Get out from under debt on property
you are willing to say "goodbye" to.
Just like in Chapter 7 ....Chapter 13 can help a
client get out from under the certain property and
the debt associated with it. For instance, say you
own a mobile home that is worth $15,000, but you
owe $25,000 on it. You have tried unsuccessfully
to sell it, but the people who want to buy it
cannot get approved for the financing to complete
the sale. And say you have had to move elsewhere.
Unless you can figure out a way to get rid of the
mobile home and the debt owed on it, you are
stuck. Just like with Chapter 7....Chapter 13 can
provide a solution.
What happens is this. As
part of the bankruptcy, you "surrender"
(give back) the mobile home to the person or
company that holds the lien against the mobile
home...in our example the person or company that
is owed $25,000. Once you do this, they have a
right to sell it. Outside of bankruptcy, once they
sold it...they would come back at you to collect
any money they did not get from the sale. In our
example...if they sold it for $15,000, you would
still owe them for the residual $10,000. But not
in bankruptcy. In Chapter 13...under the
law....after you surrender property back to a
lender....all that's left is an
"unsecured" claim against
you....and....as you now know....all that
generally has to be paid on unsecured claims is
pennies-on-the-dollar, and NO interest. Problem
solved. Thank you...Chapter 13.
The same result can also
generally be achieved with respect to other types
of property you want to get rid of.
Disclaimer: Results
will vary somewhat, depending on the jurisdiction
where you live and on your particular assets,
debts, income and expenses.
(6) Stopping Lawsuits and Creditor
Harassment. Just like with Chapter
7....one of the most powerful things about Chapter
13 is the "automatic stay". To recap
what you read in "Learn About Chapter
7"....the words "automatic stay"
don't sound very powerful, but...believe
me....this thing called the automatic stay is very
powerful. What happens is this.
Immediately, when a client files
bankruptcy....the client gets bankruptcy
protection. The Court immediately issues an order
to all creditors demanding that the creditors
leave the client alone. This order is what is
called the "automatic stay." If a
creditor does NOT comply with this order....the
Bankruptcy Court has the power to punish the
offending creditor severely. Most creditors know
this and take steps to quickly comply with the
order. Included in the duties imposed on the
creditor is the duty.... to stop all collection
calls.... at home and work....to stop writing
collection letters.... to stop all lawsuits.....
and to take whatever steps are necessary to
"call off the dogs", as in the case of
"repo" men and foreclosing
attorneys.....and to stop all garnishments except
for certain types of debs like alimony, child
support, etc. Thereafter...and
for the duration of the Chapter 13 case.....if the
creditor feels it has the right to do something,
the creditor must make a formal application to the
Court. Since Chapter 13 cases are generally 3 to 5
years long....this is powerful medicine for
keeping otherwise aggressive creditors at bay. By
having to make a formal application to the Court,
the Court is in the position to make sure you get
the protection you need and deserve.
At the end of your Chapter
13 case, the automatic stay expires.....but in
most cases....it doesn't matter. Why?
Because....with respect to all the debts that get
"discharged" (which means "gotten
rid of"), it is immediately replaced with a
"permanent" order to protect you. This
order is called the "permanent
injunction". In addition, many of your
secured debts will have been paid off during your
Chapter 13, so that you no longer need the
protection of the automatic stay.
At the end of your Chapter
13 case, creditors with
"non-dischargeable" debts, like alimony,
child support, and student loans can take up where
they left off. The good news is
that....hopefully....if you got rid of enough
other debts in your bankruptcy case.....you will
now have more income and you will be in a better
position.... and a better frame of mind..... to
deal with these residual
"non-dischargeable" debts.
(7) Free up income for your family.
The whole idea of getting rid of some debts....and
paying less on others...is so that you don't have
to pay out as much of your income on those debts.
This relieves stress and lots of it.....but to
recap what we said about Chapter 7.....it also
does something else. Most of our clients...by
filing bankruptcy... lower their total monthly
expenses by hundreds of dollars per month. This is
huge because it frees up substantial amounts of
your income to take care of other more important
things....like your normal monthly living
expenses. And, this means that....hopefully....as
long as you hold onto your job.....you are in a
better position to take care of your family. And,
being in a better position to take care of your
family can get your life started again.
Not filing bankruptcy can
mean you get "stuck in neutral" or
worse, "stuck in reverse". Filing
bankruptcy....be it Chapter 7 or Chapter 13....and
getting rid of some of the burden of
debt....generally means you and your family can
start moving forward again. No stress and a chance
to move forward. A second chance at a fresh
start.....It doesn't get any better than that.
(8) Puts you in position to earn more
money and save. For most people with
mounting bills, it usually ends up being a
situation where you have to "Borrow from
Peter to Pay Paul" just to stay current. For
most people....not filing bankruptcy means that
the more you earn, the closer you get to breaking
even each month. But forget about "saving for
a rainy day". The worst comes when you don't
earn enough and you can't borrow any more money
from "Peter" to pay "Paul".
Then....you're in big trouble.
Filing bankruptcy solves a
lot of these problems. The idea is this.
Hopefully...by filing bankruptcy...you can get rid
of enough debt so that you can live on what you
earn. This is the first step. The second step is
to finish your Chapter 13 plan. The third step is
to earn more money....but without having to use
all of it just to stay current. If you get rid of
enough debt in bankruptcy to really make a
difference....then, and thereafter....if you are
careful....you should be able to start saving
money...especially as you get wage increases or
promotions in your job. Wouldn't that be nice?
(9) Get started re-building your credit:
Filing bankruptcy is the first step. In Chapter
13....filing bankruptcy gets rid of certain
debts...and lowers payments on others. The second
step is to bring your Chapter 13 plan to a
successful conclusion. This can take a while...but
in the meantime....as long as you make your
Chapter 13 payments....at least your creditors are
kept under control. The third step...is to start
saving some money. Many clients get so much relief
from filing Chapter 13 that they are actually able
to start saving money while they are still in
Chapter 13. These are 3 important steps that need
to be taken in order to re-build your credit.
Without doubt....if you have
gotten to the point where you need to file
bankruptcy, your credit is already messed up,
maxed out and likely dead. That being the
case....the first step in rebuilding credit is to
get rid of some debt. To do
this....nothing....absolutely nothing..... works
better or faster than bankruptcy. A Chapter 7
bankruptcy is the fastest way....but the second
fastest way to get out of debt is Chapter 13.
Think about it. Anything is better than trying
to pay off debts you can't afford. At the end
of your successful Chapter 13 case....all of a
sudden, you have less debt. Assuming everything
else in your life holds together....you keep your
job....you don't get divorced.....there aren't a
lot of emergencies....and you get the normal
raises and promotions you deserve, then....for the
first time in a long time....you can start saving
some money. Saving money gives you the necessary
down payment for buying new things...and on and on
you go in the process of rebuilding your credit.
In addition...by getting rid
of some debt ....your debt to income ratio starts
looking better. Over time....you have money in the
bank from saving money on income no longer ravaged
by bills. And then....naturally and
gradually....you start to attract the attention of
more and more willing lenders. And why not? You
are now in the position to handle more credit. At
this point....life is starting to look good again
and you are well on your way to rebuilding good
credit....in no small part because you made a
smart decision to file bankruptcy.
(10) Important Disclaimer. The
bankruptcy laws are extensive and complicated. As
a consequence, most good bankruptcy attorneys do
nothing but bankruptcy. It is a full-time job to
keep up on the bankruptcy laws, exemptions laws,
and procedures....while at the same time serving
all the other needs of our clients. I mention this
because....although all of the information
mentioned before is true, in many....if not
most.... circumstances....(1) Results will vary
depending on your goals, assets, debts, income and
expenses, and (2) Because it was necessary to
oversimplify the information and the conclusions
in order to make important points. The simple
truth is that you cannot become an experienced
bankruptcy attorney or learn enough to become
knowledgeable enough to file your own bankruptcy
case by simply reading the material on this or any
other website. Anyone that would have you believe
otherwise is simply lying to you for their
personal gain....or fooling themselves. The
information on this website is simply meant to
introduce you to important concepts about
bankruptcy and to let you know the truth: That
bankruptcy does NOT work the way you think or the
way you have always been told. The best advice I
can give you is to set up a consultation with the
most experienced bankruptcy attorney you can find.
Most of the time...except...perhaps.... for people
who own and run large...or fairly
large....businesses...you can do so for FREE. My
office...for instance....offers a totally FREE
initial consultation..... so you can learn about
all your rights and all your options....bankruptcy
and otherwise...and so that you can get fast
answers to all your questions about debt and how
to deal with it.
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(1) What does it cost to file under
Chapter 13? I am the only attorney in our
area that will allow you to pay your fees over
time. That's right, I will set you up on a
payment plan that you can afford in order to get
your fees paid out. In addition, I will
show you my "tricks" for coming up with the
money, so you don't have to worry about how your
are going to pay. I have developed a plan
that will allow you to pay the fees to get the
relief that you desperately need and help keep the creditors
off your back. When you come to see me, I will
explain how I help keep the creditors off your back
and in most cases, I can show you where to get
the money.
No other attorney that I know offers this type of
payment plan.
Additionally, you don't have to come up with all of the
money. That's right, in a Chapter 13, some
of the attorney fees can be paid out in your
Chapter 13 plan payment and we will show you how
that is done at your consultation.
The overall cost of
representation in a Chapter 13 case varies from
State to State. In Mississippi....the cost for
the garden-variety Chapter 13 case is set by the
Court. In the Northern District, the attorney fee
is set at
$2,200 depending upon what services are required
and the filing fee is currently $274.
(2) How fast can I get relief?
The answer is the same as for Chapter 7. We can't
speak for other attorneys....but our answer is
this. In most cases...we work as fast you pay us
and provide us with the documents and other
information necessary to draft the schedules
required to file your case. If need be...your case
can be filed in as little as a week. In an
emergency...if need be....to avoid repossession or
to stop a foreclosure....we can free up staff to
get a case filed in less than a day.
Call today to set up a FREE Debt
Consultation.
662-844-7949
24 Hour Appointment line:
662-842-HELP(4357)
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