{"id":2123,"date":"2021-05-15T04:47:11","date_gmt":"2021-05-15T08:47:11","guid":{"rendered":"https:\/\/thegraftonfirm.com\/?p=2123"},"modified":"2022-02-14T05:09:35","modified_gmt":"2022-02-14T10:09:35","slug":"what-you-should-know-when-you-file-bankruptcy-chapter-13","status":"publish","type":"post","link":"https:\/\/thegraftonfirm.com\/ch13\/what-you-should-know-when-you-file-bankruptcy-chapter-13","title":{"rendered":"What You Should Know When You File Bankruptcy Chapter 13"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The bankruptcy filing allows a debtor to have a fresh start. Deciding on the right bankruptcy option, how to file, and understand the bankruptcy law is important if you are considering bankruptcy. Consulting with experienced Towson bankruptcy attorneys is advisable especially if it is your first time filing bankruptcy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you file for bankruptcy, you must keep in mind that you have responsibilities and bankruptcy rules follow. If you want to keep your assets while paying your creditors, Chapter 13 bankruptcy is the best choice for you.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chapter_13_Bankruptcy\"><\/span><b>Chapter 13 Bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-662884f93b4ca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662884f93b4ca\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/thegraftonfirm.com\/ch13\/what-you-should-know-when-you-file-bankruptcy-chapter-13\/#Chapter_13_Bankruptcy\" title=\"Chapter 13 Bankruptcy\">Chapter 13 Bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/thegraftonfirm.com\/ch13\/what-you-should-know-when-you-file-bankruptcy-chapter-13\/#Disposable_Income\" title=\"Disposable Income\">Disposable Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/thegraftonfirm.com\/ch13\/what-you-should-know-when-you-file-bankruptcy-chapter-13\/#Duration_of_the_Repayment_Plan\" title=\"Duration of the Repayment Plan\">Duration of the Repayment Plan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/thegraftonfirm.com\/ch13\/what-you-should-know-when-you-file-bankruptcy-chapter-13\/#There_Will_Be_No_Property_to_Be_Surrendered\" title=\"There Will Be No Property to Be Surrendered\">There Will Be No Property to Be Surrendered<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/thegraftonfirm.com\/ch13\/what-you-should-know-when-you-file-bankruptcy-chapter-13\/#Unsecured_Creditor\" title=\"Unsecured Creditor\">Unsecured Creditor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/thegraftonfirm.com\/ch13\/what-you-should-know-when-you-file-bankruptcy-chapter-13\/#Priority_Unsecured_Creditors_Will_Be_Able_to_Use_Other_Collection_Methods\" title=\"Priority Unsecured Creditors Will Be Able to Use Other Collection Methods\">Priority Unsecured Creditors Will Be Able to Use Other Collection Methods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/thegraftonfirm.com\/ch13\/what-you-should-know-when-you-file-bankruptcy-chapter-13\/#Secured_credit_cards\" title=\"Secured credit cards\">Secured credit cards<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/thegraftonfirm.com\/ch13\/what-you-should-know-when-you-file-bankruptcy-chapter-13\/#Seek_legal_advice_with_Towson_bankruptcy_attorneys\" title=\"Seek legal advice with Towson bankruptcy attorneys\">Seek legal advice with Towson bankruptcy attorneys<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">In Chapter 13 or reorganization bankruptcy, a trustee in bankruptcy will be assigned for your bankruptcy case. You will pay through the bankruptcy trustee and the trustee will allocate the funds to the creditors, who receive an amount depending on the sums paid out by your payment plan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bankruptcy trustee cannot sell assets. Instead, you need to pay your unsecured creditor at least the amount of your nonexempt asset through your payment plan in return for being able to keep your properties.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Disposable_Income\"><\/span><b>Disposable Income<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/thegraftonfirm.com\/wp-content\/uploads\/2021\/05\/File-Bankruptcy-Chapter-13.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignright size-medium wp-image-2125\" src=\"https:\/\/thegraftonfirm.com\/wp-content\/uploads\/2021\/05\/File-Bankruptcy-Chapter-13-300x300.jpg\" alt=\"File Bankruptcy Chapter 13\" width=\"300\" height=\"300\" \/><\/a>In your repayment plan, you should agree to pay back any remaining disposable income (what&#8217;s left of your salary after subtracting permitted living expenses and payments on secured loans, like mortgage or auto loan) towards unsecured debts. Unsecured debts include credit card bills, medical bills, and student loan debt.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Duration_of_the_Repayment_Plan\"><\/span><b>Duration of the Repayment Plan<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The duration is determined by your monthly income. The payment plan may last up to 5 years if your income is higher than the median income of the state. You may negotiate a three-year payment plan if your monthly income is not more than the median income. A Towson bankruptcy lawyer can help you come up with a suitable repayment plan.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"There_Will_Be_No_Property_to_Be_Surrendered\"><\/span><b>There Will Be No Property to Be Surrendered<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Exemptions allow anyone who files a petition for bankruptcy to protect the same amount of assets. Even then, you will not have to give up any properties if you filed for bankruptcy Chapter 13. However, this does not imply that you will be able to hold more property than anyone who filed<\/span><a href=\"https:\/\/thegraftonfirm.com\/debt-resolution-services\/chapter-7\"><span style=\"font-weight: 400;\"> Chapter 7 bankruptcy<\/span><\/a><span style=\"font-weight: 400;\">. You would also pay for it.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Unsecured_Creditor\"><\/span><b>Unsecured Creditor<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The one who owns the unsecured loan is referred to as an unsecured creditor. Unsecured debts, unlike secured debts, are not backed by collateral that a creditor may seize if you do not make the payment. Common examples of unsecured debts are medical bills, credit card bills, personal loans, and utility bills.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you fail to repay these debts, the creditor will not be able to compel you to give up your asset, at least not without doing anything else. Before actually taking unfavorable collection actions against you, such as wage garnishment, the majority of unsecured creditors must first file a claim and obtain a judgment in the bankruptcy court. You will not have to think about collection strategies until you are served with a lawsuit, and filing for bankruptcy would wipe out the majority of these types of debts.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Priority_Unsecured_Creditors_Will_Be_Able_to_Use_Other_Collection_Methods\"><\/span><b>Priority Unsecured Creditors Will Be Able to Use Other Collection Methods<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Income taxes that are past due and student loan payments backed by the government are still unsecured loans, so they are subject to special laws that enable creditors to take legal action against you without going to court. It also includes child support and spousal care responsibilities. These creditors have priority claims that will not be discharged by filing bankruptcy. Your repayment plan would require you to pay back the full amount of these debts.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Secured_credit_cards\"><\/span><b>Secured credit cards<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Not every credit card account is unsecured. When buying any appliance, electronics, or jewelry, carefully read the contract. You will almost agree to give the creditor a security interest in the purchased property if you sign the agreement. If you fall behind your payments, the creditor can seize your properties. If you declare bankruptcy, you would be able to repay the debt and retain the asset using <\/span><a href=\"https:\/\/thegraftonfirm.com\/debt-resolution-services\/chapter-13\"><span style=\"font-weight: 400;\">bankruptcy Chapter 13<\/span><\/a><span style=\"font-weight: 400;\">. If you can reduce the amount you are owed, you may be able to pay less.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Seek_legal_advice_with_Towson_bankruptcy_attorneys\"><\/span><b>Seek legal advice with Towson bankruptcy attorneys<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Trusted bankruptcy lawyers will assist you throughout the bankruptcy process. It is important to seek legal help from someone knowledgeable of bankruptcy laws. A <\/span><a href=\"https:\/\/thegraftonfirm.com\/\"><span style=\"font-weight: 400;\">credible Towson bankruptcy attorney<\/span><\/a><span style=\"font-weight: 400;\"> will help you have a successful bankruptcy proceeding.<\/span><\/p>\n<p><a href=\"https:\/\/thegraftonfirm.com\/contact-us\"><span style=\"font-weight: 400;\">Contact our trusted Towson bankruptcy attorneys<\/span><\/a><span style=\"font-weight: 400;\"> at <b>Grafton Firm, LL<\/b><strong>C<\/strong> for a free consultation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The bankruptcy filing allows a debtor to have a fresh start. Deciding on the right bankruptcy option, how to file, and understand the bankruptcy law is important if you are considering bankruptcy. Consulting with experienced Towson bankruptcy attorneys is advisable especially if it is your first time filing bankruptcy. When you file for bankruptcy, you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2124,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[],"_links":{"self":[{"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/posts\/2123"}],"collection":[{"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/comments?post=2123"}],"version-history":[{"count":1,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/posts\/2123\/revisions"}],"predecessor-version":[{"id":3313,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/posts\/2123\/revisions\/3313"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/media\/2124"}],"wp:attachment":[{"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/media?parent=2123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/categories?post=2123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/tags?post=2123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}