Chapter 13 Bankruptcy Attorneys in Virginia

Are you having financial difficulties and considering the possibility of a bankruptcy?  Before you make a decision, talk to the Chapter 13 bankruptcy attorneys in Northern Virginia at Tyler, Bartl, Ramsdell, & Counts, P.L.C. Since 1986, we have provided our clients with honest, quality legal advice at reasonable prices.

If you would like a free bankruptcy consultation, please call us for an appointment or complete the short contact form to get answers to your tough financial questions!

What is Chapter 13

Chapter 13 is a form of bankruptcy where individuals pay all or part of their debt under a court-approved repayment plan.  Repayment plans usually  span a period of three to five years and are typically based on the disposable monthly income of the individual.  Often times, individuals who do not qualify for chapter 7 bankruptcy are “steered” into chapter 13 based on their ability to pay their creditors, even if it is only a fraction of what these creditors are owed.  Other times, individuals use chapter 13 as a way to protect or keep assets that otherwise would be liquidated by a Trustee in chapter 7.

Who Can Benefit

Chapter 7 bankruptcy typically provides immediate and absolute relief from debts. Chapter 13, however, is for individuals with enough income to sustain monthly payments under a court-approved repayment plan.  Repayments plans may partially or fully compensate an individual’s creditors, depending on the circumstances of the particular case.  If a repayment plan proposes to pay creditors only part of what the creditors are owed, then the individual is eligible for a discharge of the unpaid balance provided that the terms of the repayment plan are fulfilled.

Debtors cannot be forced into an involuntary bankruptcy under Chapter 13.  Individuals are eligible for Chapter 13 so long as the household has some form of regular income AND the debts do not exceed the debt limits imposed by the Bankruptcy Code.  Debtors typically have an automatic right to convert a Chapter 13 case to a Chapter 7 or 11, provided the debtor(s) are eligible for the chapter for which they seek to convert to.   Chapter 13 is also beneficial in that the debtor has an automatic right to dismiss the case at any time.  It is because of this component that Chapter 13 is as an effective tool to stop foreclosure proceedings, at least temporarily.

After filing a Chapter 13, the debtor will file a proposed repayment plan.  This plan is subject to approval by the Trustee and creditors.  The first payment under the proposed plan is due 30 days after the initial filing of the case.  All debtors are required to attend a meeting of creditors, just like in Chapter 7, and, in Alexandria, they are required to attend an in-person class in personal financial management.  This is held in the same location as the meeting of creditors and takes place the morning of your hearing.

Similar to other chapters of bankruptcy, the debtor is protected from creditors once the case is filed.  How long this protection lasts depends on the particular circumstances of each case, but typically creditors must get Court approval before any actions can be taken.

Why Chapter 13

There are several advantages to a Chapter 13 bankruptcy:

• You can stop or save your home from foreclosure
• You can obtain easier a payment plan that is tailored to your budget
• You can protect co-signers
• You can keep all or most of your assets, even if they are non-exempt
• You have no contact with your creditors, as payments are made directly from your Trustee.

To fully understand the complexities, advantages and disadvantages of Chapter 13 and other bankruptcies in Virginia, contact us today or complete the short contact form on our website.

You won’t know until you give us a call at 703-549-5000 and ask for a consultation. Call us today.