Bankruptcy With Chapter 13 Lawyer Harrisburg

Chapter 13 lawyers cater for clients who have chosen to file for bankruptcy under chapter 13 of the bankruptcy code. Once you opt for chapter 13 bankruptcy, you are to pay off your debt over a certain period usually 3 years and a maximum of 5 years. The debt is distributed such that out the monthly salary, a specified amount is deducted to go to the creditor. The non-exempt property e.g. a second car, a second house, luxury musical instruments are put up for sale to recover part of the debt. In the case of commercial bankruptcy, the assets are liquefied and the remaining assets are sold. The proceeds are divided amongst the creditors.

After the settling of the case with the aid of the chapter 13 lawyer Harrisburg, a reasonable payment plan is put in place and the debtor begins payment. In the instance that the monthly income of the debtor increases after the payment plan is made, the debtor is expected to contribute his or her disposable income to the payment plan. If the income increases before the ruling is made, the appointed trustee re-evaluates the debtor’s finances and disposable income then makes the required changes to the payment plan.

Once a debtor files for chapter 13 bankruptcies, the law is more convenient than in chapter 7. In the case of a house’s mortgage, under chapter 13, if reported early enough it might stop the foreclosure. The debtor may ask the creditor through the collection agency for an extension of the payment period or lower amounts if the bankruptcy is temporary. All this decisions must be made with the legal advice of a chapter13 lawyer. The sale of businesses may be carried out to pay part of the debt but it applies to non-exempt property. The debtor is given supervision by the court through an impartial trustee who monitors the financial moves the debtor makes.

The debtor is required to present a repayment plan 14 days after the petition is filed through the debtors chapter13 lawyer Harrisburg. There are three types of claims which include priority claims- they are granted a higher status than the rest by the bankruptcy law. They include the proceeding fees and most taxes. Then there are secured claims, which give the debtor the right to take back the collateral property of the debtor if the payments are not made. However, the unsecured claims reduce the right of the creditor to collect any property belonging to the debtor. All the priority claims must be paid in full unless the priority creditor states otherwise or if the debtor contributes money to domestic obligations or all the disposable income to the 5 year plan.

You need to get the assistance of a professional Chapter 13 Lawyer Harrisburg – . when filing for bankruptcy under chapter 13 of the bankruptcy code. You can find contact information for further consultation at

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