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Approachable Chapter 13 Bankruptcy Attorneys Here To Help You Regain Control Of Your Finances

Last updated on September 30, 2024

Insurmountable debt occurs when your monthly debts and expenses amount to more than your monthly income. Debt problems of this kind are certainly not limited to those in a low-income bracket. In fact, many people with income too high to be eligible for Chapter 7 bankruptcy are still facing debt problems and need a way out. Notably, a Chapter 13 plan allows you to stop having to decide what bills you will cover each month. Most people have a range of debts that work against each other. Car loans, home mortgage payments, medical debts and credit cards all strap a household budget.

Learn What Chapter 13 Bankruptcy Involves – And How It Can Work For You

If you are facing serious debt problems, yet you have some assets you can afford to keep, contact our North Carolina law firm at 919-794-8660 for a free initial consultation. We will discuss your options in Chapter 13 bankruptcy. It is important to note Chapter 13 is a flexible debt relief solution. The repayment plan is not a debt consolidation plan. It involves developing a reasonable payment plan. The law may not require that all of your debt is paid off during the plan. In many cases, the repayment plan allows you to reorganize your debt based on priorities available through the bankruptcy code. At the conclusion of the plan, many outstanding unsecured debt balances are discharged.

At Wootton & Wootton, we are here to help you find a fresh financial start. Our Durham Chapter 13 bankruptcy attorneys have more than 40 years of combined legal experience. We will help you determine whether you qualify for Chapter 13 bankruptcy. You can decide whether this would be a good option for you. If you do decide to file for Chapter 13 bankruptcy, we will walk you through the entire process for one low, flat-rate fee. You may be able to begin your path to a debt-free future with no money down.

The Benefits Of Chapter 13 Bankruptcy

Chapter 13 is a popular bankruptcy choice for many of our clients, with benefits that include:

  • Catching up on your payments: Chapter 13 often allows people to include late payments for nondischargeable debt in the repayment plan. That means that if you are in arrears for recent, nondischargeable bills – like your mortgage, certain tax debts, student loans and the like – you may be able to make up those late payments within the plan.
  • Retaining many of your assets: With Chapter 13 bankruptcy, you can retain many of your assets. You might be able to save your home, your car and other assets. After completing the payment plan, your remaining unsecured debt will be discharged.
  • Stop collection efforts: As soon as your bankruptcy petition is filed, the law creates what is known as the bankruptcy automatic stay. Creditors are not allowed to continue collection efforts during the bankruptcy proceedings without the rare and express approval of the bankruptcy court. That means no more creditor harassment.
  • Stop foreclosure: The automatic stay places a hold on collection efforts – including foreclosure efforts. You may be able to save your home – making up past-due balances on your mortgage in the bankruptcy personal debt reorganization.
  • Manageable monthly payments: Chapter 13 involves a repayment period of three years or five years, involving more manageable monthly payments. Some repayment plans have monthly payments as low as $100 per month, including attorney fees!

The final benefit to mention is low upfront costs. At Wootton & Wootton, we have surprisingly low upfront costs for our Chapter 13 clients. Contact us to learn more.

What Are The Eligibility Requirements For Chapter 13 Bankruptcy?

In order to qualify for this relief avenue, individuals must meet debt requirements. As of 2024, a person is eligible to file for Chapter 13 if the total of their secured and unsecured debts is under $2.75 million. There is not an income maximum or minimum for Chapter 13. Because it involves a repayment plan of three to five years, however, it is important for individuals to maintain a steady income that is sufficiently large to cover their monthly expenses and their payments.

The U.S. Bankruptcy Code dictates that people cannot file for Chapter 13 in the event that either of the following occurred in the preceding 180 days:

  • The bankruptcy petition was voluntarily dismissed after those creditors who held liens on certain property requested relief from the bankruptcy court.
  • The bankruptcy petition was dismissed by the bankruptcy court after the individual debtor was found to have willfully failed to comply with court orders or appear at scheduled hearings.

If you have not previously filed for bankruptcy, the conditions above will not apply to you.

Understanding The Differences Between Secured And Unsecured Debts

In general, a secured debt is one in which the money being loaned is secured by some sort of collateral that the lender could theoretically seize and sell in the event of a default. Classic examples of secured debts include mortgages and auto loans.

In general, an unsecured debt is one in which the money being loaned is not secured by some sort of collateral, meaning the lender typically charges higher interest rates and/or will seek redress for default via the courts. Classic examples of unsecured debts include credit cards and medical bills.

If you qualify for Chapter 13, your repayment plan will provide information on how different types of debts will be paid. Priority debts will be addressed first and may need to be paid in their entirety. Next, any secured debts that exist will require regular payments. After these payments are handled, attention will then go toward paying unsecured debt, like credit card balances.

Can Chapter 13 Help You Keep Your Car?

A car loan is an example of a secured debt. Failure to make payments is remedied by repossession of the vehicle. Naturally, many people in serious debt are worried about losing their means of transportation.

If you are in this position, you can contact your lender and attempt to negotiate a solution, including changing the payment date, deferring the loan or modifying the terms. However, if negotiations with the lender are unsuccessful, there are other ways you may be able to keep your car.

Many people who are facing auto repossession are also being crushed by personal debt in other areas of their lives, such as credit card bills. For these people, filing for personal bankruptcy may be an option to seek debt relief. Once a person files for bankruptcy, an automatic stay is placed on collection efforts, including auto repossession.

Of course, the stay only lasts during the bankruptcy period. However, because Chapter 13 bankruptcy involves a significant repayment period, it may be possible to become current on car payments and keep the vehicle.

Contact A Henderson Debt Restructuring Attorney ∙ 919-794-8660

Call 919-794-8660, text our office at 919-382-3065 or email us to schedule your free initial consultation with a North Carolina Chapter 13 bankruptcy lawyer from Wootton & Wootton. Consultations are available in person, over the phone or through video conferencing.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.