Chapter 13 bankruptcy is the type of bankruptcy that you want to file if you have equity in property that would not be normally protected under Chapter 7. You can find a South Chicago Heights bankruptcy attorney who is knowledgeable in Chapter 13 bankruptcy. Basically, in a Chapter 13 bankruptcy the debtor gets to keep all of his property, and he makes a monthly payment to a trustee. The Chapter 13 trustee administers the payment plan to creditors according to a particular hierarchy or pro rata, depending upon the type of plan that’s filed. The debtor keeps all of his property when he is in a Chapter 13 repayment plan. The debtor simply must repay at least what the creditors would get if he was filing chapter 7 bankruptcy. Thus, a Chapter 13 bankruptcy case does not necessarily have to pay back $100,000.00 over time. Additionally, a Chapter 13 bankruptcy case does not necessarily have to pay 10 percent back over time. The average range is between 10 percent and 45 percent repaid to creditors over the life of the Chapter 13 bankruptcy case.
There are a number of factors that will determine what a person is going to pay under a bankruptcy Chapter 13 plan per month, and it is dependent upon income, expenses, assets, and liabilities. The most common use of a Chapter 13 bankruptcy case is to save a home that is in foreclosure. Typically when a home is in foreclosure, the mortgage company will not accept anything other than a lump-sum payment to get caught up. In a Chapter 13 bankruptcy case, the debtor is able to repay the mortgage arrears over the next 36 to 60 months, and he can make his regular mortgage payment on time once again after the case is filed. The Chapter 13 bankruptcy case stops any type of mortgage foreclosure action dead in its tracks as well as any other type of collection effort. In a Chapter 13 bankruptcy case, the mortgage company must accept the regular mortgage payment going forward provided the debtor makes that payment and provided the debtor is making his Chapter 13 payment going forward.
Since Chapter 13 is a complex type of case, I would suggest that you stay away from cheap bankruptcy lawyers. You are much better off hiring competent attorneys to handle the difficulties that arise in Chapter 13. The trustee can be somewhat difficult. The Judge can be hard to convince if the case goes to a confirmation hearing. The cases are tough. I would recommend that you get a tough attorney working on your behalf.