Chapter 13 Bankruptcy

The chapter 13 is based on an affordable payment plan.  You do not have to pay your creditors back in full.  You only have to pay what you can afford.  As an experienced chapter 13 bankruptcy lawyer in the Seattle, I can guide you through the process.

Chapter 13 bankruptcy provides the same benefits as chapter 7, plus these additional benefits.

  • You can make up missed mortgage payments and save your house.
  • If you have unpaid tickets, you can get your drivers license back within days of filing.
  • You can payoff any back taxes that couldn’t be discharged in a chapter 7.
  • If you qualify, you can file a chapter 13 for little or no money upfront.

How does a chapter 13 bankruptcy work?

  • During your free consultation with me, we will discuss your objectives and I will explain how a bankruptcy works.
  • I will gather all of your information and use it to draft a petition and plan.
  • The plan payment is based on what you can afford.
  • Your creditors are required by law to accept the plan payment and cannot ask for anything more. This means that you don’t have to worry about creditors getting paid on time or getting paid the right amount.
  • Once you make the payment, everything is taken care of for you.

Chapter 13 Bankruptcy Lets You Pay Back What You Can Afford

  • When you are in chapter 13 bankruptcy, you do not have to repay your creditors in full.
  • Your unsecured creditors may only get pennies on the dollar, and you get a discharge on the rest.
  • If you tried to repay all your creditors on your own, it could take years, and they could each demand as much as they want to.  In chapter 13 bankruptcy, they are required to accept the plan payment.

Attorney’s Fees

One of the advantages of a chapter 13 bankruptcy is that some or all of your attorney fees are paid through your plan.  If you qualify, you may be able to file a chapter 13 for $0.00 upfront costs.

How is this different from debt consolidation and debt settlement programs?

There are a lot of differences, but the most important one to you is that in a chapter 13 bankruptcy federal law requires your creditors to participate. This is because bankruptcy laws are created by Congress and overseen by the federal courts. In a debt consolidation/settlement program, your creditors get to decide if they want to participate.

If your creditors decide not to participate with the consolidation/settlement program, then you might find yourself still owing thousands of dollars in debt. The bottom line is that when you start a debt consolidation or debt repayments program, you have no way of knowing whether your debts will actually be taken care of. When you start a chapter 13 bankruptcy, you will know exactly what will happen and if a creditor misbehaves, then they have to explain themselves to a federal judge. Finally, in most cases it costs less to do a chapter 13 than it does for a debt consolidation.

Contact the Law Office of David H. Fuller, a Seattle bankruptcy attorney, for your free consultation.

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