Credit cards, mortgages and medical bills are all sources of debt that can quickly spiral out of control. If you find yourself weighed down by unmanageable financial obligations, but make too much money to qualify for a Chapter 7 bankruptcy, a Chapter 13 wage earners plan may make the most sense for you.
The experienced attorneys at Lein Law Offices can show you how. Call our law firm today at 715-634-4273 to schedule a free consultation with a knowledgeable bankruptcy attorney. Our Hayward Chapter 13 attorneys have years of experience in assisting Wisconsin families with debt management options. We can help you, too.
Lein Law Offices has been helping people with debt solutions since 1983. Our experienced lawyers can help you ease the burden of debt and get back on your feet financially.
Chapter 13 bankruptcy, also known as wage-earners bankruptcy, is a bankruptcy that incorporates a repayment element over a period of several years. A repayment plan is established to repay a portion of the debt over a period of either three to five years. The amount is based on an individual’s disposable income.
There are several reasons why individuals may choose to pursue Chapter 13 bankruptcy, even if they can qualify for Chapter 7. Advantages to Chapter 13 bankruptcy include:
- Unlike Chapter 7 bankruptcy, whose attorney’s fees must be paid prior to filing, attorney’s fees for Chapter 13 bankruptcy can be paid over the course of the plan.
- Individuals who are behind on car loan payments or facing foreclosure can prevent repossession and get caught up on payments by paying off the delinquent amount over the course of the plan.
- Chapter 13 can help make certain secured debts, like car loans, more affordable by allowing an individual to pay over the length of the plan as opposed to the contractual period
- Avoid tax penalties while repaying certain nondischargeable tax debts
- Consolidate a large number of debts by submitting one payment to a trustee who then distributes the funds to creditors. While there are circumstances where individuals may need to pay off all of their debts, in most cases, individuals repay only a portion. Once they have completed the plan with the court, the remaining unsecured debt is discharged.
Like Chapter 7, a Chapter 13 filing automatically stops collection actions against you. This is known as an “automatic stay.” As long as the “stay” is in effect, creditors may not initiate or continue lawsuits, wage garnishments or even telephone calls demanding payments.
The Hayward bankruptcy attorneys at Lein Law Offices can help you start the petition process today by compiling the appropriate financial information you will need to file. We will also defend your rights throughout the proceedings, making sure you stay well-informed and well-prepared.
Secure your family’s future by putting a stop to creditor-initiated collections actions. Call Lein Law Offices at 715-634-4273, or contact our Chapter 13 bankruptcy lawyers online to schedule a free consultation.
Free consultations — Flexible office hours and appointments — In-home and hospital visits available — Call us toll free at (800) 944-3949.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.