Connecticut and Massachusetts Bankruptcy Attorney Assists Chapter 13 Filers

Considering Chapter 13? Connecticut and Massachusetts Law Firm Can Guide You Through the Reorganization Process

Chapter 13 bankruptcy isn't for everyone, but if you have regular income and want to keep your property, it can be the answer for you. Chapter 13, also known as reorganization, will allow you to pay back all or a portion of your debts over a three to five-year period.

Eligibility

To be eligible for chapter 13, you will have to prove to the court that you can afford to meet the payment obligations. If your income is irregular or too low, or your total debt burden is too high, you might be ineligible for chapter 13 bankruptcy. Typically, your secured debts (such as your house or car) cannot exceed $1,149,525, and your unsecured debt (credit cards or medical bills) cannot exceed $383,175.

Process

Before you will be able to file for chapter 13 bankruptcy, you will be required to receive credit counseling from an agency approved by the U.S. Trustee's office. These agencies are allowed to charge a fee for their services, but must provide free or reduced rate counseling if you cannot afford to pay.

You will also need to pay a filing fee of $274, complete and file numerous forms, and come up with a repayment plan detailing how and how much you plan to pay creditors. Certain priority debts, such as alimony, child support, wages owed to employees, and certain tax obligations must be paid in full, and the plan must also include regular payments on secured debts such as a car loan or mortgage.

Any disposable income left after making the required payments will go toward paying off unsecured debt such as credit card payments and medical bills. You will not be required to totally pay off unsecured debt; you only have to show in your repayment plan that you plan to use any remaining income to repay it.

If reorganization of debt is the answer to your financial problems, the attorneys at Susan M. Williams LLC can help you file for chapter 13 bankruptcy and guide you step by step through the process. Contact our firm online, via e-mail, or call 860-265-4764 to schedule your free initial consultation with one of our bankruptcy attorneys today.