VIVIAN HOUGHTON IS NOW LOCATED AT THE OFFICES OF
Doroshow, Pasquale,Krawitz & Bhaya
1202 Kirkwood Hwy Wilmington, DE 19805
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Going Through Chapter 13 Bankruptcy in Delaware?
Hire an Experienced Delaware Chapter 13 Bankruptcy Attorney
Chapter 13 bankruptcy is a reorganization plan and is also known as the wage earner’s plan. A Delaware bankruptcy
lawyer helps develop a repayment plan under Chapter 13 of the
Bankruptcy Code. The debtor’s plan must contain a repayment plan to pay
some or all of his or her debt within three to five years. The time
frame is dependent on the state’s median. During the time the debtor is
within the plan and is making payments to the Chapter 13 trustee,
creditors cannot start or continue collection efforts.
Advantages of Chapter 13
There are some advantages of filing for Chapter 13 reorganization over filing for Chapter 7 liquidation:
- Filing Chapter 13 allows a debtor an opportunity to save his or her home from foreclosure.
- Chapter
13 allows the debtor to reschedule secured debts (not including the
mortgage on his or her primary residence) over a period of time (over
the Chapter 13 plan)
- Chapter
13 works like a consolidation loan—the debtor makes payments to the
Chapter 13 trustee. The trustee distributes the payments to the
creditors.
- There is no direct contact between the debtor and the creditors.
A Delaware bankruptcy attorney will explain these advantages in more detail and will also explain a debtor’s rights under Chapter 13.
Requirements of Filing Chapter 13 Certain requirements must be met before and during a Chapter 13 filing:
- The
debtor must create and file a repayment plan. The plan should
preferably be submitted with the petition, but a debtor has up to 15
days after the filing of the petition to file the repayment plan.
- The
plan must provide for the payoff of fixed amounts to the trustee. The
payments must be on a regular schedule (weekly, bi-monthly, monthly).
- The plan must outline priority claims—priority, secured and unsecured. The Law Office of Vivian Houghton
helps the debtor fit his or her assets into the proper categories when
preparing a Chapter 13 plan. Priority claims must be paid in full under
most circumstances.
- The debtor must attend a meeting of the creditor, commonly called a “341 Meeting.”
The
provision of a plan that has been confirmed by the bankruptcy court is
binding on the creditors and the debtor. The debtor may make payments
directly to the trustee or he or she may have it pay via payroll
deduction.
The
scope of the Chapter 13 discharge has recently changed and may always
undergo additional changes. Certain debts are not dischargeable under
Chapter 13 bankruptcy. A Delaware bankruptcy lawyer can advise a debtor
as to the ability to discharge certain debt and will take this into
consideration when completing a Chapter 13 plan for the debtor.
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