Finding Relief With Chapter 13

The purpose of Chapter 13 bankruptcy is to protect your assets if you do not qualify for Chapter 7. Once  you file for Chapter 13, you’ll immediately gain relief from your debt. The terms of Chapter 13 state that you agree to a creditor payment plan mandated by the bankruptcy court. This plan allows you to gradually pay off your debts, and avoid having your most valuable assets sold to pay your debts. Engel Law Group knows that your possessions are important to you, and we don’t want you experiencing the pain of having your house foreclosed and your life ruined. Our Seattle Chapter 13 bankruptcy attorneys will work with you to make sure your filing is performed correctly, and answer all of your questions. When the filing is complete, you’ll gain peace of mind and the chance to start over.

In order to qualify for Chapter 13, you must take a test according to 11 U.S.C §109(e): so long as an individual has unsecured debts that are less than $360,475 and secured debts that total to less than $1,081,400, they will usually be eligible.

However, like all laws, there are some exceptions to this debt law, which include:

  • You are a business – not an individual
  • You filed for Chapter 13 within the last two years
  • You filed for Chapter 7 within the last four years
  • You had a prior bankruptcy dismissed within the previous 180 days
  • You have not obtained the proper credit counseling
  • You have not filed your income tax returns
  • Your repayment plan doesn’t repay all required debts

The advantages to Chapter 13 versus Chapter 7 are many, but the main one is avoiding having to liquidate your assets. You create a payment plan that’s fair, and allows you to keep what’s yours.

Chapter 13 helps you avoid the peril of foreclosure because an immediate stop is placed on these proceedings. This action covers delinquent mortgage payments and establishes a schedule for you to pay off your secured debts. Finally, third parties who are labeled as your co-signers are protected.

Our Seattle Bankruptcy Lawyers will work with you to determine the best path to take towards a debt free life. Contact Engel Law Group today and get the help and relief, you need.