Chapter 13 Bankruptcy Palm Beach Gardens

With Chapter 13 bankruptcy, the financially struggling individual has the opportunity to repay his debts over time. People who hold a job can draw up a plan to pay outstanding debts within five years. However, those who do not make the anticipated payments run the risk of having their claim dismissed or converted into a Chapter 7 liquidation claim.

How it Works

Before you can file for bankruptcy, you must take and complete a personal financial management course. Afterwards, you may submit a petition with your local court, indication that you want to file for bankruptcy. Documents that should be included are some, but not all, of the following: accounts of assets, liabilities, current income, expenditures, all financially-binding contracts, unexpired leases, and all other things regarding financial affairs. Jointly filed individual must bring documents for both parties involved.

Submitting all of the required documents is sometimes overwhelming and confusing. Scheduling a consultation period with your person bankruptcy lawyer might help expedite and smoothen the process. A trustee is assigned to your case, once all of the appropriate documents have been submitted. The trustee plays many different roles. He serves as an independent adjudicator, distributes monthly payments to each creditor, and initiates an “automatic stay,” effective immediately, which stops all attempts from creditors to collect on outstanding debts. Shortly thereafter, a meeting is set between the interested parties, during which the debtor's financial situation and repayment plan is discussed at length.

It is recommended to meet with your own person bankruptcy attorney before attending the meeting. Once you have done so, you should be familiar with what to expect.

The Repayment Plan

Within 30 days of the petition submission, payment as outlined in the plan must be made. You may pay in a variety of different ways; cash, check, money order. However, payroll deduction is usually the preferred form of payment. Plans may be modified before and after the plan's confirmation, in case the debtor's financial situation changes.

In the repayment plan, debtors usually identify three types of claims: priority claims, involving taxes and associated bankruptcy fees; secured claims, involving secured property debt; and unsecured claims, which refers to most other forms of debt. Only priority claims must be paid in full.

The above information does not substitute for legal counsel. It is for information only, not advice. If you have questions or concerns contact your local bankruptcy lawyer.

The Palm Beach Gardens Chapter 13 Bankruptcy law specialists at the Eric N. Klein, P.A. law firm are here to help you. Call them today at 561-353-2500.

Portions reprinted from the office of the US Department of Justice.