Our highly skilled legal team at The Law Offices of Jonathan P. Shultz is here to get to work for you today if you are considering filing for bankruptcy to get out of debt and obtain a fresh start. If the burden of unpaid debt has you stressed and unable to sleep at night because you can no longer afford to pay your mortgage or because you are facing wage garnishment, please don’t hesitate to get in touch with our firm so we can leverage our extensive resources and years of experience to find practical solutions to your financial situation.
Call (303) 625-7995 to see if Chapter 13 bankruptcy is the right option to tackle your debt issues.
Chapter 13 bankruptcy is for debtors with regular incomes. Chapter 13 bankruptcy reorganizes your debts so you can catch up on your past-due payments through a monthly repayment plan. Repayment plans generally last three to five years.
Under a Chapter 13 bankruptcy, you may end up repaying all of your debt or just a portion of it, depending on how much disposable income you have and the value of your personal property and non-exempt assets. Chapter 13 bankruptcy also allows you to eliminate certain debts that aren’t dischargeable if you were to file for a Chapter 7 bankruptcy.
If approved, you can discharge the following unsecured debts in a Chapter 13 bankruptcy:
- Credit card debt
- Medical bills
- Personal loans
- Older nonpriority income tax obligations
- Utility bills
- Most lawsuit judgments
- Debts from a property settlement agreement in divorce
- Outstanding debts from a prior bankruptcy in which the court denied the discharge
- Retirement account loans
- Certain fines and penalties owed to the government (excluding criminal fines)
Question #1: What is the difference between Chapter 7 and Chapter 13 bankruptcy?
A: Although both bankruptcy options can discharge your debts, the main differences are the eligibility requirements, how long the bankruptcy takes, whether you need to repay your debts, and how much of your exempt property you will be allowed to keep.
Question #2: Do I need to have a certain amount of debt in order to qualify for Chapter 13 bankruptcy?
A: There are debt limits that apply if you file for Chapter 13 bankruptcy. Currently, you can have $1,149,525 in secured debt and $383,175 in unsecured debt. Your household income must also be above your state’s median income to qualify for Chapter 13.
Question #3: Do I have to go to court if I file for Chapter 13 bankruptcy?
A: You might have to appear at a confirmation hearing before a judge. If any of your creditors file motions or objections in bankruptcy court, then you will also have to appear at a court hearing to address the matter. Whether you will have to go to court will ultimately depend on the details of your case and financial circumstances.
Ask About Our Cost-Effective Bankruptcy Services Today
One of our firm’s core principles is providing cost-effective legal representation for our clients. We understand that facing financial difficulties can be overwhelming. Our firm strives to do whatever we can to maintain very low overhead costs so we can pass the savings on to our clients through flexible payment terms. Individuals and families throughout the greater Denver area turn to us when they are overwhelmed by debt and need a fresh financial start. Please get in touch with our friendly legal team to get started on your case.