Idaho Chapter 13 Bankruptcy Lawyer

Understanding the Wage Earner's Plan

Chapter 13 bankruptcy allows individuals with a regular income to restructure their debts into a more manageable 3 to 5 year repayment plan. This can allow consumers to keep their property while repaying some or all of their debts to creditors. If you are consistent with the payment plan, all your remaining dischargeable debt may be released at the end of the plan. The duration of your payment plan and the amount you will be required to pay will depend on several personal circumstances. At Avery Law, we have assisted numerous clients during their Chapter 13 proceedings and our Idaho bankruptcy lawyers are prepared to walk you through your Chapter 13 bankruptcy.

If you have a steady income, sufficient assets or property and the ability to afford monthly payments toward covering a least some of your debt, you will most likely file under Chapter 13 bankruptcy, as Chapter 7 bankruptcy is reserved for individuals who have little means to pay their preexisting debt. The bankruptcy process will begin when you file a petition with the bankruptcy court.

An automatic stay will then be issued, protecting you from debt collection activities such as lawsuits, wage garnishments, foreclosure proceedings and debt collection phone calls. You must also supply information about your financial affairs, your debts, your living expenses and information about your income. As the legal work involved in compiling and supplying such information can be difficult, our Idaho Chapter 13 attorneys make it a point to handle these procedures on your behalf, while keeping you fully informed about the progress of your case.

The Chapter 13 Payment Plan

Depending on your financial situation, your debts will then be consolidated and reorganized into a payment plan that will last three or five years. To determine the length of your plan, the court will use a means test to compare your monthly income to the state of Idaho's monthly income. If your monthly income is greater than the median income, you will use the five year payment plan. If it is less, you will use the three year payment plan. Although you will be responsible for making payments on your debts, you may still be eligible to discharge any remaining debt after you have completed the three or five year payment plan. This debt forgiveness can ultimately allow you to pay less than the total amount of debt you owe, while at the same team protecting your property and assets.

How To File Bankruptcy Chapter 13

Initiating a Chapter 13 bankruptcy process necessitates various actions. First, you must collect your financial records, and examine your liabilities and assets. Then, you must formulate a budget and establish a plan for repaying your debt. Prior to filing, completion of pre-filing bankruptcy counseling via a nonprofit credit counseling organization is mandatory.

It's essential to maintain a steady income and ensure that all necessary tax returns for tax periods ending within four years of your bankruptcy submission are filed. Once you have filed your petition, you must meet with the bankruptcy trustee assigned to your case and participate in a meeting with creditors. Generally, a Chapter 13 case takes several months to confirm as the court considers your case.

How Do You Qualify For Bankruptcy Chapter 13?

In order to be eligible for Chapter 13 bankruptcy, you must satisfy a few conditions. Firstly, you need to have a regular source of income as Chapter 13 is primarily designed for wage earners who can pay back a portion of their debts through a repayment plan. A Chapter 13 plan must be feasible.

The total amount of your secured debts (like mortgages and car loans) and unsecured debts (like credit card bills and medical debts) must also fall within certain limits.

It is also necessary to demonstrate that you've filed both state and federal income tax returns for the past four years. Before submitting your bankruptcy application, you need to assure the bankruptcy court that after deducting certain expenses and obligatory payments towards secured debts, you'll still have a sufficient amount of income remaining so that you can maintain a standard of living within the IRS allowances.

Retain the Experienced Support You Need

While the Chapter 13 bankruptcy process is no easy task, you can successfully navigate through these proceedings with the assistance of a Chapter 13 lawyer in Idaho from our firm. With more than 65 years of combined experience and more than 8,000 bankruptcies filed, our legal team knows the ins and outs of Chapter 13 bankruptcy. As a result, we are fully prepared to educate you about your unique situation and to support you throughout every step of your journey.