Chapter 13 bankruptcy is a type of reorganization bankruptcy, which allows you to consolidate many different types of debts. Dantzman and Dantzman have helped countless individuals and families obtain successful, court-approved Chapter 13 plans. While Chapter 13 is often used as a way to help people keep their homes or cars, Chapter 13 also allows individuals to consolidate debts such as credit cards, loans, medical bills, and even student loans into one convenient monthly payment. Often these types of debts can be paid back at pennies on the dollar. Because there can be many benefits to filing for Chapter 13 bankruptcy, we want to help make sure your case is a success. Here are some practical steps you can take to make sure your Chapter 13 plan is approved.
Not Having the Guidance of an Experienced Bankruptcy Attorney
When you’re already short on cash and don’t have much to spare, the last thing you’re likely thinking about is hiring a lawyer. However, pro-se self-filed Chapter 13 cases are almost never successful. Many bankruptcy trustees will tell you they have never seen a successful Chapter 13 case where a debtor was unrepresented. The reason is that bankruptcy law is complex, even for the most experienced attorneys. Getting a Chapter 13 plan confirmed by the Federal Court requires proper planning and extensive knowledge of bankruptcy laws and procedures. Our fees are reasonable, and in some cases, we can wrap some or even the majority of our fees right into the Chapter 13 plan.
A good bankruptcy lawyer knows the local rules, the system, and how to navigate the courts. They will be a helpful guide throughout the entire process and ensure you get the most benefits out of your bankruptcy. A great bankruptcy lawyer will minimize the risk of something going wrong with your case.
Set Your Chapter 13 Plan Payments Up Through Automatic Electronic Withdrawal
Chapter 13 plan payments must commence within 30 days of the filing of your case. You must make a payment, once per month to your Chapter 13 trustee. The trustee then takes this payment and disburses it to your creditors. The Trustee’s Office has implemented a secure, efficient, auto bill payment system through www.www.tfsbillpay.com. We strongly recommend this for our clients so that there is no chance of your payment getting lost in the mail or not arriving on time. This is important as failure to maintain your plan payments can cause your case to be dismissed, it is important that you set up a plan from the beginning to make sure your trustee is getting these payments on time.
Set a Budget and Make Sure to File Your Tax Returns on Time Each Year
Once your Chapter 13 Case is filed, it is important that you put together a budget for you and your family to live under while in the plan. While the Court allows you to continue to have all reasonable and necessary expenses for you and your family to live and function under. Actually sitting down and setting up a budget for yourself and your family is always very important to the success of your plan. Even though you will no longer have to make any credit card payments or pay the past due amounts on your car or home (as those will all be consolidated into your Chapter 13 plan), we find that making a budget is still a critical step in the process.
Additionally, every year you are in a chapter 13 plan you must file your tax returns on time and submit copies to the trustee. While you can get an extension to file while in Chapter 13, we really stress getting the tax returns filed as soon as you receive your W-2 statements. In this way, you are helping make sure your tax returns are properly filed by April 15, as failure to file tax returns is also grounds to have your case dismissed.
These simple but important steps can really help make sure your Chapter 13 plan is a success.
What If Circumstances Prevent You From Making Your Plan Payments
Chapter 13 repayment plans are three to five years. Debtors are expected to live within their means while they are under a Chapter 13 plan, but a lot can change during this time. Any disruption in the flow of income, like illness or job loss, will make it very difficult to keep or get back on track. Furthermore, people tend to tire of making payments after several years on a strict repayment plan.
If you fall behind on your Chapter 13 plan payments, your bankruptcy trustee or a creditor will usually ask the court to dismiss your case for nonpayment. Our firm knows how to object to these motions and how to work with the Trustee and Court to help give you time to get caught up, or if necessary, to modify your plan to a more affordable level. Alternatively, it is sometimes possible to have your Chapter 13 case switched to Chapter 7 (as long as you have not filed Chapter 7 in the 8 years prior to filing Chapter 13). But there are many factors that need to be weighed when making this decision first, and you will need to take action and seek advice from a bankruptcy attorney to see if this is possible in your case.
Call Today for Your Free Bankruptcy Consultation
Chapter 13 plans have helped our clients save their homes and property, and assisted them in getting back on the right financial track with all of their other debts as well Chapter 13 plans are good because they allow you to not only get caught up on things like past due mortgage, rent or car payments, but you can also consolidate all of your debt. Our firm can help you navigate through what can seem like a daunting and overwhelming situation. We are compassionate attorneys who want to see you get your life back on track and we can help you get there.
Given all of the uncertainty involved in a repayment plan that lasts from three to five years, the help of an experienced bankruptcy attorney will increase your chances of a successful bankruptcy process. Contact Dantzman and Dantzman if you are in debt and might benefit from Chapter 13 bankruptcy or other options our firm offers.