| About wage earner repayment plans
If you desire to repay all or part of your debts, but have fallen behind on your payments and simply need relief and protection from your creditors until you can regain your financial footing, a Chapter 13 bankruptcy, commonly referred to as a wage earner repayment plan, can help you meet those needs.
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| Can all attorney fees be put in Chapter 13?
Filing bankruptcy, especially a Chapter 13 plan, can involve rules and procedures complex enough to require legal assistance from an attorney. Of course, attorneys don't generally work for free, but the valuable assistance and advice they can offer you most likely will outweigh the costs.
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| Can auto repossession be stopped?
If your car is about to be repossessed because you've fallen behind on your payments, a Chapter 13 bankruptcy can help you keep your vehicle. The moment you file for bankruptcy, what's known as an automatic stay goes into effect, stopping all creditors from taking actions against you to collect their debts.
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| Can employers discriminate?
You may be concerned about how your employment opportunities may be affected if you file for protection under a Chapter 13 bankruptcy. While it's true that a bankruptcy filing appears on your credit report for up to 10 years and employers have the right to access your credit report with your permission during the hiring process, no employer can legally base employment decisions based solely upon your bankruptcy filing.
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| Can foreclosure be stopped?
One of the most immediate effects a Chapter 13 bankruptcy will have when you file is what's known as the automatic stay. The automatic stay stops all your creditors from taking actions against you to collect their debts, including foreclosure.
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| Chapter 13 vs. private debt consolidation
Private debt consolidation has become an increasingly popular way for consumers to get out of debt. It involves consolidating all of your debts into one affordable monthly payment.
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| Do both spouses file Chapter 13?
If general eligibility requirements are met, both a husband and wife may file a Chapter 13 bankruptcy, either jointly or individually. It's not, however, required that both of you do.
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| Failure to make payments
Once a bankruptcy court approves your repayment plan under a Chapter 13 bankruptcy, it will be your sole responsibility to make the plan succeed. This will involve you making timely and regular payments to the trustee handling your case.
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| How long will repayment take?
A typical repayment plan under a Chapter 13 bankruptcy lasts about three years. Additional time can be requested if your financial condition requires it and the bankruptcy court approves it, but in no case may the plan last more than five years.
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| How will filing Chapter 13 affect co-signers?
The moment you file for bankruptcy, the law immediately initiates an 'automatic stay' which stops all creditors from taking actions to collect their debts not only from you but also from any co-signers on the debts.
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| Must all debts be paid in full?
A Chapter 13 bankruptcy is intended to help financially distressed individuals who would like to pay their debts but are currently unable to do so. The way it works is that you propose and fulfill a repayment plan, under court supervision and protection, to pay back your creditors in installments over an extended period of time, usually three years.
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| Reducing monthly payments
A Chapter 13 bankruptcy is designed to help you satisfy your financial obligations by allowing you to refinance and consolidate your debts into one affordable monthly payment.
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| What about child support and alimony?
Don't fall under the mistaken impression that filing bankruptcy will release you from your obligation to pay child support and/or alimony. Under bankruptcy laws, no matter what chapter you select, all court-ordered payments for the support of a child or former spouse are non-dischargeable and must be paid in full.
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| What are the advantages and disadvantages?
Filing bankruptcy is a serious matter that can have long-lasting consequences, both negative and positive. Thus, before making the decision to declare bankruptcy, it's always important that you're aware of both its advantages and disadvantages.
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| What does Chapter 13 do to my credit?
Like all bankruptcies, a Chapter 13 filing will negatively affect your credit rating and hurt your ability to obtain credit for some time. However, unlike a Chapter 7 bankruptcy, Chapter 13 plan will appear on your credit report for only seven years, instead of 10.
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| What does it cost to file?
In order to file a Chapter 13 bankruptcy, you'll be required to pay $185 (one hundred and eighty-five dollars) to the bankruptcy court clerk when you submit your petition.
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| What is Chapter 13 debt consolidation?
Chapter 13 of the federal Bankruptcy Code, also known as a wage-earner repayment plan, is a court-protected and court-supervised debt consolidation program.
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| Who can file Chapter 13 bankruptcy?
Any individual living in the United Sates with a steady income can file a Chapter 13 bankruptcy, also known as a wage earner repayment plan. Your income, though, doesn't necessarily have to come from wages earned from a job, as the name implies.
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