Chapter 13 bankruptcy is a way for people who qualify to reorganize their debt and make payments to their creditors over a specific and finite period of time. The process of filing for Chapter 13 can be a complicated one, but with the help of an experienced bankruptcy lawyer, you can get your life back on track.
Filing for Chapter 13
There are several filing requirements that Chapter 13 bankruptcy filers must fulfill. You will be subject to a “means test,” a test based on IRS-regulated median standard for the area of New Mexico where you reside, to determine your repayment amount. After this process has been completed, a petition, and Chapter 13 plan outlining how your creditors will be repaid, will be filed with the Bankruptcy Court. Depending on your income and repayment plan, Chapter 13 bankruptcy can last from three to five years.
Upon filing, you will be granted an automatic stay, which prevents creditors from attempting to collect on your debts. During the repayment process, they will be notified that they are not allowed to contact you during the entirety of your Chapter 13 bankruptcy.
At the chapter 13 filing, you will be ordered to attend a 341 creditors meeting, a meeting where a court-appointed trustee will ask about your petition and Chapter 13 plan. Once your repayment plan is confirmed by the Bankruptcy Court, all of your debts have essentially been consolidated and your payments will go directly to a court-appointed trustee who will then distribute the funds to your creditors.
Call Melwani Law toll free at 866-501-8500 today for your free consultation!
Contact an Experienced Albuquerque Bankruptcy Lawyer Today
If you are considering filing for bankruptcy, you do not have to face the process alone. The legal advice and help of a bankruptcy attorney can make the process as problem-free as possible. Be sure to contact the experienced bankruptcy attorneys of Melwani Law for your free bankruptcy consultation. We’re here to help you with the knowledge and experience needed to guide you through this difficult process. Contact us today!