What You Should Know About Chapter 13 Bankruptcy
Lakelaw - Attorneys Serving Southeastern Wisconsin
Chapter 13 bankruptcy allows debtors to keep all of their property under the condition that they set up, and stick to, a debt payment plan to pay back a substantial portion of their debt over the next 36-60 months. At the end of the three- to five-year plan, if the debt has not been paid off in full, whatever dischargeable debts remain are discharged entirely.
Contact Lakelaw online or call 262.694.7300
Also called a "wage earner" bankruptcy, Chapter 13 bankruptcy is only available to individuals who have a steady source of income. However, that income does not necessarily have to be from a "wage" — it can be from government benefits, tenants' rent checks or even a trust fund.
In addition, there are limits to how much debt may be discharged under Chapter 13. Individuals with over $1,010,650 of secured debts (such as a mortgage or car loan — any debt tied to collateral) or over $336,900 of unsecured debt (like credit debt) are disqualified from filing Chapter 13 bankruptcy and will either have to liquidate their assets under Chapter 7 bankruptcy or pursue alternative options such as Chapter 11 bankruptcy or Chapter 128 Receivership under Wisconsin Statutes.
Chapter 13 Bankruptcy Stops Foreclosure and Repossessions
If you have fallen behind on car or mortgage payments, Chapter 13 bankruptcy can also help you avoid foreclosure and repossession. The payment plan created in the bankruptcy reinstates these loans, and the bank or credit agency will be required to accept the payments put forth in the plan.
If a new, unexpected expense arises — like an unexpected illness or a car accident — and it prevents you from being able to make your payments, you still have options. Just contact your attorney right away and you can start working to have your plan amended to accommodate your new expenses.
Do Not Stress A Moment Longer - Take Action
If you are dealing with creditor harassment or are suffering under the anxiety of overwhelming debt, you do not have to wait any longer to take action. When you hire us, debt collectors must stop harassing you. Otherwise, we will pursue claims against them under the Fair Debt Collection Practices Act (FDCPA) or the Wisconsin Consumer Act (WCA). At Lakelaw, we treat each client as a complete human being, not just as a stack of forms. You will receive the care, kindness, courtesy, respect, professionalism and dedication that you deserve.
To set up a consultation, contact us online or call 262.694.7300.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.