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© 2018 Murray Law

CHAPTER 13 BANKRUPTCY

MASSACHUSETTS BANKRUPTCY LAWYER

CHAPTER 13 BANKRUPTCY - "THE REPAYMENT PLAN"

Chapter 13 Bankruptcy is the section of the Bankruptcy Code which helps qualified individuals, or small proprietary business owners (but NOT corporations or partnerships), who desire to repay their creditors but are in financial difficulty.

Among other things, Chapter 13 Bankruptcy offers great opportunities to pay off past due mortgage arrears, car payments or outstanding business debts, over the course of 36-60 months. These 36-60 month repayment plans give you time to catch up and keep your property. It essentially forces your creditors to work with you rather than take alternative, and much more drastic, measures. 

CHAPTER 13 ELIGIBILITY

Chapter 13 Bankruptcy isn't for everyone. Chapter 13 requires a debtor to prove to the court that there is enough income available to make the plan payments in addition to regular monthly expenses. If a debtor's income is irregular or too low, the court might not allow the filing of a Chapter 13 Bankruptcy. Part of the process at Murray Law is to go over a client's finances prior to filing to avoid this type of issue.

A debtor can also be ineligible to file Chapter 13 Bankruptcy if their debt burden is too high. Your secured debts cannot exceed $1,149,525 and your unsecured debts cannot be more than $383,175. A "secured debt" is one that gives a creditor the right to take a specific item of property (such as your house or car) if you don't pay the debt. An "unsecured debt" (such as a credit card or medical bill) doesn't give the creditor this right.

CHAPTER 13 BANKRUPTCY COSTS IN TIME AND MONEY

The whole Chapter 13 Bankruptcy can take anywhere from three to five years, costs $310 in filing and administrative fees, and commonly requires only one trip to the courthouse. The plan payments are made to the Bankruptcy Trustee monthly, who will distribute the funds to your respective creditors. 

 

Our fee is in addition to this and is determined on a case-by-case basis. An attorney will sit down with you at your free case evaluation, discuss your specific situation, and together we can come up with a fee that is reasonable. Contact Murray Law and get back on track today!

MURRAY LAW

39 Union Avenue

2nd Floor

Sudbury, MA 01776

Tel: (978) 579-9800

Fax: (978) 579-9800

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