Filing Chapter 13 Bankruptcy in Albuquerque

Chapter 13 Bankruptcy is a legal process that allows individuals to reorganize their debts and create a repayment plan under the supervision of a bankruptcy court. This type of bankruptcy is often referred to as a ‘wage earner’s plan’ because it’s designed for individuals with regular income.

Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off debts, Chapter 13 allows individuals to keep their property while repaying their debts over a period of three to five years.

Advantages of Chapter 13

One of the advantages of filing for Chapter 13 bankruptcy is the ability to keep your property while creating a manageable repayment plan. This option allows individuals and families to avoid foreclosure or repossession of their assets.

Additionally, Chapter 13 bankruptcy offers protection from creditor harassment, providing a sense of relief and peace of mind.

It also gives individuals a chance to reorganize their debt and work towards financial stability.

Chapter 13 Bankruptcy Eligibility

When considering Chapter 13 bankruptcy, it’s important to understand the eligibility requirements that must be met in order to proceed with this debt reorganization option.

To be eligible for Chapter 13 bankruptcy, an individual must have a regular income and their unsecured debts can’t exceed $419,275, while their secured debts can’t exceed $1,257,850.

Additionally, the individual must complete an approved credit counseling course before filing.

How does Chapter 13 work?

To proceed with Chapter 13 bankruptcy, individuals must understand how this debt reorganization option works. Here are three key points to consider:

  • Chapter 13 allows individuals to create a repayment plan to pay off their debts over a period of three to five years.
  • The repayment plan is based on the individual’s income and expenses, ensuring it’s realistic and manageable.
  • Once the plan is approved by the court, individuals make monthly payments to a trustee who distributes the funds to creditors.

Understanding these aspects is crucial before filing for Chapter 13 bankruptcy.

The Chapter 13 Plan and Confirmation Hearing

The Chapter 13 plan outlines the terms and conditions for repaying debts and is subject to a confirmation hearing. This plan is crucial in determining how much the debtor will pay each month and for how long.

During the confirmation hearing, the bankruptcy court will review the plan to ensure it meets the requirements of the bankruptcy code and is feasible for the debtor. Once approved, the debtor must adhere to the plan to successfully complete their Chapter 13 bankruptcy.

The Chapter 13 Bankruptcy Discharge

Upon successful completion of the Chapter 13 plan, debtors are eligible for a discharge of their remaining debts. This discharge provides a fresh start and relief from the burden of overwhelming debt. Here are three key points to understand about the Chapter 13 bankruptcy discharge:

  • A discharge releases debtors from personal liability for specific debts.
  • Not all debts are dischargeable, such as certain taxes, student loans, and child support obligations.
  • The discharge is typically granted after the debtor completes the payment plan and fulfills all obligations.

The Chapter 13 Bankruptcy Hardship Discharge

After successfully completing the Chapter 13 plan, debtors may qualify for a hardship discharge in certain circumstances. A hardship discharge is a form of relief granted by the bankruptcy court when debtors experience unforeseen financial difficulties.

To be eligible for a hardship discharge, debtors must demonstrate that they’ve made their best efforts to comply with the Chapter 13 plan but are unable to continue due to circumstances beyond their control. It provides a fresh start and a chance to rebuild their financial lives.

Hiring a Chapter 13 Bankruptcy Lawyer

When facing the complex process of filing for Chapter 13 bankruptcy in Albuquerque, it’s crucial to seek the guidance of a skilled and experienced lawyer.

Hiring a Chapter 13 bankruptcy lawyer can provide invaluable assistance and support throughout the entire process.

From analyzing your financial situation to creating a feasible repayment plan, a knowledgeable attorney can navigate the legal complexities and help you achieve a successful outcome.

Call Us Today for Assistance

If you’re considering filing for Chapter 13 bankruptcy in Albuquerque, it’s wise to reach out to a knowledgeable and experienced bankruptcy lawyer for assistance today.

They can provide the guidance and support you need to navigate the complex legal process.

By hiring a bankruptcy lawyer, you can benefit from their expertise in negotiating with creditors, creating a feasible repayment plan, and protecting your assets.

Don’t face bankruptcy alone – call us today for the help you deserve.

Get in Touch Today!

We want to hear from you about your Bankruptcy needs. No Bankruptcy problem in Albuquerque is too big or too small for our experienced team! Call us or fill out our form today!