Chapter 13

happyfamilyChapter 13 bankruptcy is similar to debt consolidation, in which you make one monthly payment to a Chapter 13 trustee who will then disperse payments to your creditors, as outlined by the plan you file in court.
Chapter 13 bankruptcy is similar to debt consolidation, in which you make one monthly payment to a Chapter 13 trustee who will then disperse payments to your creditors, as outlined by the plan you file in court.  In certain cases Chapter 13 has some advantages over Chapter 7, such as the ability to remove second mortgages.  Shawn A. Doan will review with you the advantages of each chapter in light of your specific situation so that you can obtain the best possible financial solution.

Chapter 13 FAQ

How does Chapter 13 allow me to Reorganize My Debt?
When an individual does not qualify for Chapter 7 bankruptcy, it is likely that he or she will be eligible to file for Chapter 13.  Chapter 13 bankruptcy does not completely erase debt, but consolidates debt and restructures it into a monthly payment plan that is affordable.  Most typically individuals who are awarded Chapter 13 make enough income to pay for living expenses, but not enough to pay off their debts in full. With Chapter 13, the debtor pays for living expenses first, and then any left over money is used to repay creditors, even if it’s just pennies on the dollar.

What is the Timeline for Chapter 13 Filing?
Chapter 13 Bankruptcy cases are significantly different from Chapter 7 Bankruptcy cases.  Depending on the individual’s ability to pay, Chapter 13 bankruptcy cases typically take three to five years from initial filing to discharge. Case complexities and variables may extend the process.

How long does Processing Take?
Bankruptcy processing time varies from case to case, depending upon many factors. However, most cases are processed and ready for filing within two to three weeks from submission of the completed Free Online Case Evaluation. Chapter 13 Bankruptcy cases are much more complex than Chapter 7 Bankruptcy cases and could take longer to process.

Is Emergency Filing available?
Emergency Bankruptcy Filings can in most cases be filed instantly and at any time to stop creditors before a foreclosure, wage garnishment, or lawsuit can take place. Additional fees will apply, but are usually well worth the instant relief it provides.

How can I stop Creditor Harassment?
Once you retain the services of Shawn A. Doan, CREDITORS MUST REFRAIN ALL FURTHER CONTACT from you.  If a creditor contacts you after representation by Shawn A. Doan begins and proof exists that the creditor knows of Shawn A. Doan’s representation of your case, we can sue.  Your creditors will receive a letter advising them of Shawn A. Doan’s representation and to cease all further communications.  Shawn A. Doan has successfully sued numerous creditors over the years for this type of conduct and made substantial recoveries. In many cases, it pays for the bankruptcy and puts money in your pocket.

How do I know if I should file Chapter 13 Bankruptcy?
Fill out your Free Online Case Evaluation and Shawn A. Doan will help you determine if Chapter 13 is the best possible financial solution for you.

Chapter 13 and a Hardship Discharge
Chapter 13 Bankruptcy is also known as the “wage earner’s plan.” It allows people with an income the option of creating a plan to repay all or part of their debts when they are experiencing financial hardship. Under a Chapter 13 Bankruptcy the debtor agrees to a repayment plan of their debts over the course of three to five years.

Let’s say that you’ve filed for Chapter 13 Bankruptcy by a San Diego Bankruptcy attorney but you’re still experiencing financial hardship, what do you do next? The worst thing you can do would be to simply stop making your payments. If a person stops making their payments to their trustee you can expect your Bankruptcy case to be dismissed without a discharge. This means that all of the debt that you had and all of the harassment from creditors that you received before you filed your bankruptcy case was filed will once again rear its ugly head and you will now be responsible for all of it, on your own, as you were before.

Rather than burying your head in the sand and ignoring your problem, you can talk to your bankruptcy attorney about a Hardship Discharge. A Hardship Discharge allows debts to be wiped clean even thought the repayment plan has not been completed.

This option is only available if:

The debtor’s failure to complete their payment plan was due to circumstances beyond their control.
The creditors have received at least as much as they would have in a Chapter 7 liquidation case.
Modification of the plan is not possible. As an example, you could have an injury or illness that prevents sufficient employment that would fund a modified plan.

Hardship Discharges are much more limited than a Chapter 13 discharge and it doesn’t apply to any debts that are non-dischargeable so it’s best that you speak with your bankruptcy attorney about your options.

If you are in this situation, do not ignore your financial issues any longer. Let San Diego Bankruptcy Attorney Shawn A. Doan give you all of your alternatives so you can remove the weight of financial burden off of your shoulders and start living your life, fiscally worry free.

Chapter 13 and Your Student Loan Debt
In today’s society, many people are left to face overwhelming student loans that look more like mortgage payments and they are left to pay them from a job that doesn’t even give them enough money to purchase the necessities.

While there are some programs that assist with the repayment of federal student loans, most private loans have been unwilling to offer affordable repayment plans. With a Federal student loan you can be offered the Income Based Repayment plan, which is based on your household size and income. However, Private student loans do not qualify for the Income Based Repayment program. Often times, even with the assistance of a program, the repayment amount may be beyond what is feasible for your situation.

There is an option that is available to you if you cannot obtain the relief you need from these assistance programs. Bankruptcy. While most student loans are not able to be discharged through bankruptcy, the bankruptcy code can still be used to obtain an affordable monthly payment that fits your budget.

When you file for a Chapter 13 bankruptcy in San Diego, your student loans will be consolidated into an affordable monthly payment plan that takes place over a 36-60 month period. This plan is a great alternative for borrowers facing imminent wage garnishment and/or a borrower who has a creditor that is unwilling to work out an affordable monthly payment. Once your Chapter 13 bankruptcy case is filed, any collection efforts or wage garnishment from the student loan must stop immediately. Your new plan will call for payments that are significantly lower than what was originally required from the student loan company.

Even if you have recently filed for Chapter 7 and had your other debts discharged, Chapter 13 bankruptcy can still be filed for your student loans. The Chapter 13 bankruptcy will be used as a tool to set up a practical repayment amount for your student loans.

When your Chapter 13 repayment plan has been complete, you are still responsible for any debt that is left over on your student loan. If your circumstances have not changed enough to let you pay the amount required then you may need to consider filing another Chapter 13 bankruptcy.

When Chapter 13 is used to assist with a student loan debt, it can be an amazing tool. Contact the law office of Bankruptcy Attorney Shawn A. Doan for more information on how you can ease the burden of your student loans.