Considering a Utah Chapter 13 Bankruptcy Attorney? A chapter 13 bankruptcy is when a debtor proposes a payment plan to pay a portion of their debts over a 3-5 yeas period. Chapter 13 bankruptcy provides instant and automatic protection from creditors the moment it is filed. Filing a chapter 13 case stops repossessions, foreclosures, evictions, attachments, and utility shutoffs. It offers debtors very strong protection and creditors cannot take any further action against the debtor or the property without permission from the bankruptcy court.
What is a Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy is when a debtor proposes to make a small monthly payment to a bankruptcy trustee over a 3-5 year period. The payments usually go towards a debtor’s secured or priority debts (examples below), and most debtors still discharge some if not all of their unsecured debts. Examples of the types of secured and priority debts commonly paid during a chapter 13 bankruptcy plan include:
- Back taxes
- Past due child support and alimony
- Late house payments
- Tax liens
- Auto Loans
- RV Loans
- Mobile homesRemember, just like in a chapter 7 bankruptcy, chapter 13 debtors often discharge most if not all their unsecured debts. Examples of unsecured debts most debtors discharge in a chapter 13 bankruptcy plan include:
- Credit cards
- Medical bills
- Payday loans
- Divorce property settlements
- Legal fees
- Almost all other types of unsecured debts
Does a Debtor Lose any Assets or Property in a Chapter 13 Bankruptcy?
No. Chapter 13 bankruptcy is a non-liquidation bankruptcy, meaning a debtor is allowed to keep all of their assets, even assets that are paid off or free and clear from liens. The trade off is that debtors pay back a portion of their unsecured debts in exchange for being able to keep all of their property. Debtors can even keep property that is not exempt.
When should a Debtor Consider Chapter 13 Bankruptcy?
Attorneys at Murff Law Offices can analyze your case during a free consultation and help you weigh the pros and cons of filing a chapter 13 case, as well as determine your projected monthly payment and how the plan would work. You can call or text Murff Law Offices 24/7 to determine if chapter 13 bankruptcy is right for you during a free consultation.
Some of the reasons to consider filing a chapter 13 bankruptcy over a chapter 7 bankruptcy include:
- When a debtor wants to save a home from foreclosure
- When a debtor wants to stop tax levies or garnishments and repay back taxes interest free over a 3-5 year period
- Reduce high interest auto loans down to as low as 3-4%, or to cram down negative equity and reduce the overall balance owed on the auto loan in some cases
- When a debtor wants to stop back child support or alimony garnishments.
- When a debtor is a higher earner and above the median income or otherwise does not pass the chapter 7 means test.
- When a debtor has received a discharge in a chapter 7 case within the past 8 years
How Much Will My Chapter 13 Bankruptcy Payment Be Each Month?
The factors that determine your monthly payment in a chapter 13 bankruptcy plan include:
- A debtor’s monthly disposable income
- A debtor’s secured debts such as late house payments, tax liens, and car payments
- A debtor’s assets or property that is not exempt or only partially exempt
How Much Does a Chapter 13 Bankruptcy Case Cost?
The chapter 13 filing fee for the bankruptcy court is $310. In many cases, the attorneys at Murff Law Offices can get your chapter 13 filed for just the cost of the bankruptcy filing fee. Murff Law offers low money down and even $0 money down bankruptcy filing options that make it easy and affordable to quickly for a chapter 13 bankruptcy.