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Chapter 13 Bankruptcy

A Chapter 13 bankruptcy, also sometimes called a wage earner's plan, enables individuals or married couples with regular income to develop a plan to repay all or part of their debts. Under this chapter, a repayment plan is proposed to make monthly installment payments through a trustee to creditors over three to five years. Once a proposed plan is confirmed, creditors must accept the terms of repayment. During this time the law also forbids creditors from starting or continuing collection efforts such as garnishments or lawsuits.

We are a debt relief agency, and we help individuals file for relief under Chapter 13 of the United States Bankruptcy Code. Our initial consultation is free and in most cases we establish a payment plan for attorney fees. At the initial consultation, you will be asked to provide a list of your creditors and the approximate amounts that you owe, a list of your assets and their approximate values and information concerning your income.

How does a Chapter 13 case differ from a Chapter 7 case?

Most people are familiar with Chapter 7 liquidation, sometimes called straight bankruptcies. The basic difference between a Chapter 13 case and a Chapter 7 is that in a Chapter 7 case the individual’s nonexempt property (if any) is liquidated (i.e. sold) to pay as much as possible toward the debts, while in a Chapter 13 case a portion of the debtor’s future income is used to pay as much of the debts as is feasible under the circumstances. In a Chapter 13 case, the debtor usually keeps all of their property.

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

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