Many people think filing Chapter 13 is the answer when they are in financial trouble. However, bankruptcy is a strict legal procedure and debtors have to follow all the rules. For example, credit counseling is required before a bankruptcy is filed. Chapter 13 filers must show that they qualify and earn enough money to repay their debts. There are many benefits to filing Chapter 13 including:
1. repayment of nondischargeable debt
2. avoiding foreclosure or repossession
3. repaying debts that are important to you
Nondischargeable debt includes student loans, child support arrearage and most taxes. Chapter 13 gives one the ability to repay these debts over time. In difficult economic times, it is easy to get behind on a mortgage or car note. Collection activities cease while the debtor makes up missing payments. Further, the debtor gets to keep their property. If you plan to file Chapter 13 Bankruptcy in Colorado Springs, contact the law office of David Koppa. This firm has a lot of experience with helping clients propose a Chapter 13 plan. The plan is based on the debtor’s take-home pay and their monthly budget. The difference between the two is paid to the bankruptcy trustee. The trustee reviews the plan to make sure the debtor is repaying as much debt, as possible.
The attorney helps the debtor complete the necessary forms when filing Chapter 13 Bankruptcy in Colorado Springs. The various forms disclose one’s income and assets, itemizes debt and identifies the names and addresses of the creditors. An automatic stay is entered once the petition is filed. Each creditor gets a copy of the automatic stay which prevents any further efforts to collect debt. In a few weeks, the first meeting of creditors is held. This is basically a meeting with the debtor, the debtor’s attorney and the bankruptcy trustee. The trustee asks questions to verify the answers in the forms. The confirmation hearing is generally the final proceeding. If the trustee approves, the Judge signs off on the bankruptcy plan. If all goes well, all unsecured debts will be discharged at the end of the plan. This allows one to have a fresh financial start.
