Filing Chapter 13 Bankruptcy in Hackensack
Chapter 13 Bankruptcy is a legal process that allows individuals to create a repayment plan to pay off their debts over time. This type of bankruptcy, also known as a wage earner’s plan, is designed for those who’ve a regular income but are struggling to meet their financial obligations.
Advantages of Chapter 13
After understanding what Chapter 13 Bankruptcy entails, individuals can now explore the advantages it offers for those seeking to regain control over their financial situation.
Chapter 13 provides the opportunity to create a manageable repayment plan, allowing debtors to keep their assets while gradually paying off their debts over a period of three to five years.
This can provide a much-needed sense of stability and relief, helping individuals rebuild their financial lives and regain a sense of belonging in their community.
Chapter 13 Bankruptcy Eligibility
To be eligible for Chapter 13 bankruptcy, individuals must meet certain requirements regarding their income, debt levels, and financial situation.
- Income: The individual must have a regular source of income that’s sufficient to cover their living expenses and make monthly payments towards their debts.
- Debt Levels: There are limits on the amount of secured and unsecured debts that a person can have to qualify for Chapter 13 bankruptcy.
- Financial Situation: The individual’s financial situation must demonstrate a genuine need for debt relief and a willingness to adhere to a repayment plan.
How does Chapter 13 work?
The process of Chapter 13 bankruptcy involves creating a repayment plan to address an individual’s debts and provide them with financial relief.
This plan typically lasts between three to five years, during which the debtor makes regular payments to a bankruptcy trustee.
The trustee then distributes these payments among the creditors.
Chapter 13 allows individuals to keep their assets while still working towards paying off their debts, offering a fresh start and a chance for financial stability.
The Chapter 13 Plan and Confirmation Hearing
Once the repayment plan has been developed in Chapter 13 bankruptcy, the debtor will proceed to the crucial step of the confirmation hearing.
During this hearing, the bankruptcy court will review the proposed plan to ensure it meets the necessary requirements.
The debtor’s attorney will present the plan, outlining how the debtor intends to repay their debts over a period of 3 to 5 years.
The court will then evaluate the plan’s feasibility and affordability before deciding whether to confirm it.
The Chapter 13 Bankruptcy Discharge
Upon successful completion of the repayment plan, debtors in Chapter 13 bankruptcy may be eligible for a discharge of their remaining debts. This discharge releases the debtor from personal liability for these debts, providing a fresh start and a chance to rebuild their financial future.
However, not all debts are dischargeable under Chapter 13. Debts such as child support, certain tax obligations, and student loans may not be discharged.
It’s important to consult with a bankruptcy attorney to understand which debts can be discharged in your specific situation.
The Chapter 13 Bankruptcy Hardship Discharge
After completing the repayment plan, debtors in Chapter 13 bankruptcy may be eligible for a hardship discharge if they encounter unforeseen financial difficulties. The hardship discharge is a way to provide relief to debtors who’ve made a good faith effort to repay their debts but are unable to do so due to circumstances beyond their control.
It allows them to receive a discharge of their remaining debts, giving them a fresh start and the opportunity to rebuild their financial future. The requirements for a hardship discharge include demonstrating that the debtor’s inability to pay is due to circumstances beyond their control, such as a job loss, medical condition, or other serious financial hardship.
Debtors must also show that they’ve made their best efforts to repay their debts and that granting the discharge isn’t unfair to creditors. If granted, the hardship discharge will release the debtor from the remaining balance of their debts, with certain exceptions such as alimony, child support, and certain tax obligations.
It’s important to consult with a knowledgeable bankruptcy attorney to determine if you qualify for a hardship discharge and to navigate the complex bankruptcy process.
Hiring a Chapter 13 Bankruptcy Lawyer
When facing the complexities of filing for Chapter 13 bankruptcy, it’s crucial to have the guidance and expertise of a reputable lawyer. Hiring a Chapter 13 bankruptcy lawyer can provide individuals with the necessary support and legal knowledge to navigate through the process successfully.
Whether it’s understanding the eligibility requirements, developing a repayment plan, or negotiating with creditors, a skilled attorney can offer invaluable assistance and help achieve the best possible outcome for their clients.
Call Us Today for Assistance
If you’re considering filing for Chapter 13 bankruptcy in Hackensack, it’s crucial to seek assistance from a qualified and experienced Chapter 13 bankruptcy lawyer. Hiring a lawyer can provide you with the guidance and support you need throughout the bankruptcy process.
They can help you understand the complexities of the law, navigate the court system, and develop a strong case. By calling us today, you can take the first step towards a fresh financial start.
Get in touch with us today
Recognize the importance of choosing cost-effective yet high-quality services for filing Chapter 13 bankruptcy. Our expert team in Hackensack is prepared to assist you with all aspects of the filing process, whether it involves comprehensive guidance or minor adjustments to enhance the effectiveness of your bankruptcy plan!