Chapter 13 is the section of the United States Bankruptcy Code that deals with reorganization. There are two main groups who file a Chapter 13 under the new bankruptcy laws that changed in 2005. First, there are those who should file a Chapter 13 and then there are those who must file a Chapter 13 under the new bankruptcy laws in Colorado.
If you are in foreclosure in Colorado and want to stop your foreclosure sale set on your house or you are behind on your car and want to protect it from repossession, you should file a chapter 13 bankruptcy immediately! Even better, sometimes you can even wipe out your second mortgage on your house which will lower the payments on it in the future. Additionally, if you are behind on taxes or child support payments then a Chapter 13 bankruptcy has many benefits over a Chapter 7.
Others must file under Chapter 13 due to the new bankruptcy code. This determination is primarily based on your household income or if you previously filed a bankruptcy. Give our office a call for your FREE CONSULTATION and we will let you know if you must file under Chapter 13 due to the new bankruptcy law.
In a Chapter 13 bankruptcy, you will enter into a payment plan with the Colorado Bankruptcy Court, which usually lasts between 3 and 5 years. For most Chapter 13 plans, only a portion of what you currently owe to your creditors is paid over time by making regular monthly payments to a single Colorado bankruptcy trustee, who then pays your creditors a pro-rata share of what is actually owed. Thus, you only pay back what you can afford to pay back and everything else is discharged and you will not owe those creditors anymore. Even better, the attorneys at Weselis & Suchoparek LLC allows you to put most of your Chapter 13 legal fees into the Chapter 13 repayment plan.
Usually your Chapter 13 payment is substantially less than even your minimum credit card payments or any debt consolidation program out there. The same holds true in both Chapter 7 and Chapter 13 bankruptcy from the very moment you file your bankruptcy case you are under bankruptcy protection. From that moment forward, you will not make any more payments to your credit cards or medical debt and only on your house and / or car(s) if you want to keep them. Call our office today for a free consultation to see if the Chapter 13 bankruptcy option is the best option for you!
There are many benefits associated with a Chapter 13 that you may not be aware of which are detailed at length using the link below.