Will I Qualify To File Bankruptcy?
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Washington State Chapter 13 Bankruptcy Laws
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Will I Qualify To File Bankruptcy?
Contact Us.
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CHAPTER 13 BANKRUPTCY
In a Chapter 13 bankruptcy, you are required to make monthly payments to a trustee for a period of 36 to 60 months. The first payment is due 30 days from the date your case is filed. In general, the the Chapter 13 filer often has at least some assets of significant value and a relatively high monthly income.
The primary goal of a Chapter 13 bankruptcy is to consolidate your debts and set up a manageable monthly payment. Chapter 13 bankruptcies are often referred to as a "Debt Consolidation", or the "Wage Earners Plan".
Chapter 13 is primarily designed to allow you to stop foreclosures and repossessions, and allows you to make up the back payments in a 36 to 60 month plan. In a Chapter 13, we can also consolidate other bills, such as your car payment, whereby you only pay the value of the car, and not the loan balance. Other debt that can be consolidated includes tax debts, student loans, and child support or alimony arrears.
The process of filing a Chapter 13 bankruptcy is considerable more complex than a Chapter 7. In addition to the voluntary petition and related documents, filing a Chapter 13 also requires submission of a repayment plan.
This repayment plan details how you propose to make your monthly payments to the Trustee. In addition to the 341 meeting of creditors, there is also another mandatory hearing, which is called a "confirmation hearing".
In a confirmation hearing, your case goes before a bankruptcy Judge for final review and approval. Typically, it is not necessary for you to attend the confirmation hearing. We appear on your behalf.
Prior to the confirmation hearing, creditors often file objections to your plan's confirmation or approval if they have issues with your proposed repayment plan. This frequently requires that we respond to their objections on your behalf.
In the majority of cases, however, your case will be confirmed by the Judge at the confirmation hearing if you are current with your Chapter 13 payments to the Trustee, any amendments requested by the Trustee have been filed, and any objections filed by your creditors have been addressed and resolved.
Once your plan has been confirmed, all you have to do is make all your monthly payments under the proposed Chapter 13 repayment plan, and you will receive your discharge. There are frequently a number of motions filed by creditors, the Trustee, and by us as attorney, during a Chapter 13 case. Chapter 13 bankruptcies are quite complex and it is highly recommended that you not attempt to proceed without an experienced attorney.