Richmond, Virginia Chapter 13 Bankruptcy Attorneys
Chapter 13 bankruptcy allows you to reorganize debt on credit cards, medical bills, certain kinds of loans, past-due mortgage payments, and different kinds of unsecured debt. In some situations, under the terms of Chapter 13 bankruptcy, you many only be required to pay back 5% to 10% of your unsecured debt over a 3 to 5 year period. In filing for Chapter 13, an accurate assessment of your debt and monthly disposal income must be taken into account when proposing a repayment plan for approval by the court.
While creditors will have an opportunity to ask you questions or challenge your repayment plan, once a bankruptcy judge approves its terms there is little creditors or banks can do. At the law office of Cravens & Noll, our attorneys work closely with clients in preparing and filing Chapter 13 bankruptcies. As in Chapter 7, there are certain state and federal exemptions you can claim that allow you to protect more of what you own.
If you do not qualify for Chapter 7 bankruptcy, contact bankruptcy lawyers at Cravens & Noll today to schedule a free consultation and learn how we can help you.
Avoiding Foreclosure through Chapter 13 Bankruptcy
The majority of people who file for Chapter 13 bankruptcy are able to keep their homes. Since Chapter 13 allows you to restructure your unsecured debt, you can combine different kinds of debt into a single manageable monthly payment. As a result, people often have enough money left over to pay their monthly mortgage. Additionally, while you can't discharge your mortgage debt through Chapter 13, you can include past due mortgage payments in your debt restructuring plan. This will allow you to avoid late charges and bring your account current.
Your Repayment Plan - the 341 Meeting
Once you submit your repayment plan, you are required to attend a meeting with your creditors. Referred to as the "341 meeting" after the bankruptcy code section that requires it, your creditors will be given an opportunity to ask you questions under oath. Our attorneys will accompany you to the 341 meeting in order to counsel and advise you should the need arise. Typically, very few if any creditors appear at the 341 meeting. However, occasionally a creditor may want to question you regarding the terms of your plan or specifics regarding your current financial situation. We can advise you and ensure your rights and interests are protected.
Considering Bankruptcy? Contact Cravens & Noll Today
If you don't know how you're going to pay the bills next month and are already behind on your mortgage, bankruptcy may be the best options available to you. Using a debt consolidation service is almost always more expensive and is not governed by the kinds of protections afforded by bankruptcy law. Additionally, debt consolidation companies do not have the authority to negotiate with your creditors. As a result, they cannot guarantee you the same level of savings or protections available through bankruptcy.
To learn more about Chapter 13 bankruptcy and how we can help you, contact the law office of Cravens & Noll today.
