Chapter 13 Bankruptcy Attorney Helps You Keep Your Home

If you are employed with a steady income, but are still struggling with overwhelming debt and falling behind on your mortgage, McCook Law Firm, LLC can help you get relief and save your home.

Chapter 13 bankruptcy resembles a loan consolidation that allows debtors to pay off a portion of their debts in installments over a three-to-five-year period under a federal court-ordered repayment plan and have the remainder of their qualifying debt discharged. 

Chapter 13 allows some debts to be discharged that can't be discharged in Chapter 7. This includes marital debts created in a divorce agreement (exclusive of spousal support or alimony), court fees, certain tax-related debts, condo and homeowners' association fees, debts for retirement loans, and debts that could not be discharged in a previous bankruptcy.

The most common reasons for a chapter 13 bankruptcy are:

1. Does not qualify for a chapter 7: The debtor (person who desire to file bankruptcy) has income that is above the state’s qualifying income for the debtor’s family size.
2. Keep Home: The debtor is delinquent on his or her home mortgage payment and to avoid loss of his or her home in a foreclosure, files a chapter 13 bankruptcy which allows the debtor to cure the arrearage and thus keep their home.
3. Owes taxes: Chapter 13 allows a debtor to pay back the taxes owe over 3 to 5 years. During that period penalties and interest are not accumulated.
4. Marital debts: Unlike a Chapter 7, in a chapter 13 a debtor can discharge marital debts created in a divorce agreement (exclusive of spousal support or alimony).

In Chapter 13 bankruptcy, you and your attorney will work to prove your eligibility for a debt reorganization to a bankruptcy trustee, who administers the proceedings. You’ll get court approval of a plan to repay both

unsecured and secured debts in part or in full. With extensive experience in this area, McCook Law Firm can help you file Chapter 13 quickly and efficiently. Once you have filed for bankruptcy, your creditors must immediately stop collections efforts, including harassing letters and phone calls.

To qualify for Chapter 13 bankruptcy:

• You must have regular income
• Your combined total secured and unsecured debts are less than $2,750,000
• You must be current on tax filings
• You cannot have filed for Chapter 13 in the past two years or Chapter 7 in the past four years
• You cannot have filed a bankruptcy petition (Chapter 7 or 13) in the previous 180 days that was dismissed for certain reasons, such as failing to appear in court or comply with court orders

One of the many advantages of a Chapter 13 filing is that you can save your home from foreclosure. A court-issued automatic stay stops foreclosure as soon as you file your Chapter 13 petition. You can then cure your delinquent mortgage payments over your repayment period. Chapter 13 requires you to develop a plan with a reasonable schedule for bringing your past-due payments current, allowing you to keep your home. McCook Law Firm, LLC has experience with chapter 13 bankruptcy matters we put our knowledge to use to protect your home during the bankruptcy process.

Chapter 13 bankruptcy process:

1. Hire Attorney: Sign a representation Agreement with McCook Law Firm, LLC. 
2. Credit Counseling: Complete a mandatory pre-filing bankruptcy counseling through a nonprofit credit counseling agency.
3. Fill out paperwork: McCook Law firm will help you fill out the various forms required to file. You will need to gather information on your whole financial picture, including debts, income, property and monthly expenses.
4. Submit bankruptcy petition: Your bankruptcy petition is filed with the court which triggers the automatic stay protection preventing creditor collections efforts, including harassing letters and phone calls.
5. Submit your payment plan: Within 14 days of filing the petition, you must submit a proposed payment plan. You must start making payments on the plan within 30 days of filing the petition, even if it hasn’t been approved yet.
6. Meeting of creditors: Between 21 and 50 days after filing the petition, the trustee will host a meeting in which creditors can discuss any issues they have with you. Your attorney will be present with you at this meeting.
7. Confirmation hearing: No later than 45 days after the meeting of creditors, you, the trustee and creditors who wish to attend meet in court to confirm the payment plan.
8. Payment:  Over three to five years, creditors are paid as agreed under the plan.
9. Debtor education course: Before the Chapter 13 bankruptcy is complete, you must complete a “debtor education course” from a nonprofit credit counseling agency.
10. Discharge: Once you have completed the agreed upon payment plan you obtain you bankruptcy discharge. 

LOWERING DEBT PAYMENTS AND PROTECTING CO-DEBTORS

A Chapter 13 plan restructures your secured debts so that you can pay them over a longer period, often in lower payment amounts. In addition, it may be possible to protect co-signers of certain loans so as to avoid putting business partners and family members at risk of loss from your bankruptcy. I do a complete analysis of your financial situation to develop strategies and identify your best filing options.

Contact an experienced bankruptcy attorney in Albuquerque, New Mexico.

Don’t let crushing debt drive you out of your home. Chapter 13 can protect your home, lower your monthly expenses, and allow you to discharge qualifying debt.  Call Toll Free: (888) 397-0510 or contact McCook Law Firm, LLC online to schedule your free bankruptcy consultation via phone or at one of our office locations.