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Chapter 13 Bankruptcy

Kocinski Law Offices, LLC strives to solve its clients’ financial problems they are experiencing and to provide the legal services they need.

If you have a significant amount of equity in your home, significant assets, and sufficient income to repay your debts, you may be eligible for Chapter 13 bankruptcy (Repayment plan). Chapter 13 bankruptcy may significantly reduce or completely eliminate incurred interest and prolong your repayment period. If you are considering filing for bankruptcy please Contact us to schedule a consultation so one of our experienced bankruptcy attorneys can help you determine if Chapter 13 bankruptcy is a possible financial solution for you.

 Is Chapter 13 Bankruptcy Right for Me?

You will need to have enough income in chapter 13 to pay for your necessities and to keep up with the required payments as they come due. You should consider filing a chapter 13 plan if you: own your home and are in danger of losing it because of money problems; are behind on debt payments, but can catch up if given some time; have valuable property which is not exempt, but you can afford to pay creditors from your income over time.

 What property can I keep?

In a chapter 13 case, you can keep all of your property if your plan meets the requirements of bankruptcy law. In most cases you will have to pay the mortgages or liens as you would if you didn't file bankruptcy.

 What Will Happen to My Home and Car If I File Bankruptcy?

You will not loose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in chapter 13.

 Can Chapter 13 Bankruptcy Stop Foreclosure?

In most cases, an automatic stay is entered as soon as a Chapter 13 bankruptcy petition is filed. The automatic stay should temporarily stop foreclosure, along with all other collection action, regardless of the stage of the foreclosure proceedings. With the automatic stay in place, the debtor and his or her attorney have the breathing room to work out a Chapter 13 repayment plan.

 Can I Own Anything After Bankruptcy?

Yes. Many people believe they cannot own anything for a period of time after filing for bankruptcy. This is not true. You can keep your exempt property and anything you obtain after the bankruptcy is filed. However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after your bankruptcy discharge, that money or property may have to be paid to your creditors if the property or money is not exempt.

 Will Bankruptcy Affect My Credit?

Yes, it will. If you are behind on your bills, your credit may already be bad. Bankruptcy will probably not make things any worse. After bankruptcy, when you pay your bills on time, your credit score will improve dramatically.

 Can I Get a Credit Card After Bankruptcy?

A number of banks now offer "secured" credit cards where a debtor puts up a certain amount of money (as little as $200) in an account at the bank to guarantee payment. Usually the credit limit is equal to the security given and is increased as the debtor proves his or her ability to pay the debt. Also, many companies will most likely offer you unsecured credit cards as soon as couple of months after your discharge.

 Are Utility Services Affected?

Public utilities, such as the electric company, cannot refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service and you do have to pay bills which arise after bankruptcy is filed.

 What about Co-signers?

If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt.

 How long after filing will the creditors stop calling?

Once a creditor or bill collector becomes aware of a filing for bankruptcy protection, it must immediately stop all collection efforts. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct.

 Where do I file if I haven't lived in the same state or district for the last six months?

The case should be filed in the bankruptcy district in which the debtor has lived for the greatest portion of the last six months.