L.W. THOMAS & ASSOCIATES
A bankruptcy law firm
Attorney Lisa W. Thomas
Manageable Debt Repayment Plan
Understanding Chapter 13 Bankruptcy
Chapter 13 Bankruptcy allows you to restructure your debts, based upon your income, into an affordable and legally binding re-payment plan that your creditors cannot opt out of.
Chapter 13 is Effective in dealing with
PENDING VEHICLE REPOSSESONS
HIGH ASSET CASES
REDUCING CAR NOTES
HARASSING PHONE CALLS
LIABILITY FROM DIVORCE
LIABILITY FROM CO-SIGNED DEBTS
STOP FORECLOSURES AND
Generally, upon the filing of a Chapter 13 an "automatic stay" is put into effect. This "stay" order means that any foreclosure suit, pending sheriff sale or attempt to repossesses your vehicle must immediately stop.
Timing is crucial. You must file bankruptcy prior to the foreclosure sale in order to save your home.
Don't waste time.
If you have a pending foreclosure suit or vehicle repossession, schedule and appointment immediately with our attorneys.
Chapter 13 Bankruptcy allows individuals to create a debt repayment plan based upon their income, type of debts, and assets.
Chapter 13 allows you the opportunity to keep your house or car without being current on the notes.
Mortgage Arrears and Tax Debt are allowed to be spread over the duration of the repayment plan.
Minimal Payments on Unsecured Debt:
For most individuals, Chapter 13 requires less than a 10 percent repayment of unsecured debt. Additionally, this debt is usually paid back with 0% interest and no late fees. Once the Chapter 13 is completed, the remaining unsecured debt is generally wiped away.
During your initial consultation, our attorneys will estimate a repayment plan for your individual situation.
REDUCE CAR NOTES
Chapter 13 has the ability to significantly reduce your car payment.
Repayment Based Upon Value:
Individuals who file Chapter 13 with car loans that are about 2.5 years old can repay the loan based upon the value of the vehicle rather than the balance of the loan. For example, if you owe $35,000 on a car, but it is only worth $15,000, you only have to pay back $15,000 to get your Title. Since most cars depreciate as soon as they leave the lot, Chapter 13 can save your thousands on your car loan.
Reduced Interest Rate:
Vehicle repayments in Chapter 13 are based upon the bankruptcy interest rate "Till" rate, which is usually much lower than the debtor's actual vehicle interest rate.
ability to make changes
One of the best features of Chapter 13 is flexibility. Life is complicated and can change at any moment. Chapter 13 allows you seek a modification of your repayment plan at almost any point in the case.
Income changes may allow you to reduce your payments.
You may decide, after a few months or years, that you no longer want the house or car you thought you needed at the beginning of your case.
You may get approved for a mortgage modification while you are in bankruptcy.
Whatever the circumstance life may throw your way, our attorneys will work with you to make any necessary changes to you allow you financial success.
Generally, upon the filing of your Chapter 13 case, all collection actions must immediately stop. This includes lawsuits and garnishments.
The Chapter 13 process from filing to discharge is about 3 to 5 years, depending upon which repayment plan fits your financial situation.