The length of the repayment plan generally runs between 3 and 5 years (“Plan Term.”)

During the plan term, you will pay your unsecured creditors anywhere between 10% and 100% of what you owe the unsecured creditors – sometimes less than 10%.

Most people file a Chapter 13 (rather than a Chapter 7) for one of four reasons:

It is determined by a large number of factors – including: the household income, how many dependents you have, what kind of debt you have (secured/unsecured/priority). This is part of what the attorney will analyze during the free, confidential consultation.

This is commonly referred to “Lien Stripping” or “Stripping/Removing the Junior Lien.” If the market value of your residence is valued at LESS THAN the amount owed to your first mortgage holder, you may be a candidate to (a) remove the junior liens from the property and (b) have the lien paid through your monthly repayment/trustee payment (for example at 10 cents on each dollar).

If things change during the course of your case, call us. We will evaluate whether or not you are still a good candidate for a Chapter 13 case or if we can safely convert your case to a Chapter 7 case. If possible and appropriate, we can petition the Bankruptcy Court to lower your monthly payments based on the change in circumstances.

After your case is filed with the Bankruptcy Court, there are two important date in the first phase of your case: (a) the Meeting of Creditors and (b) the Confirmation hearing.

(a) Meeting of Creditors: You will go with your attorney to the Office of the Chapter 13 Trustee. This meeting takes place in an office building, about six weeks after your case is filed and is informal. Generally, it will be you and an attorney from this office, sitting across a desk from the hearing officer. The essential purpose of the meeting is for an employee of the Trustee’s office to review your case to make sure the plan that we have filed on your behalf is workable.

(b) Confirmation Hearing: This hearing takes place at the Courthouse & usually your presence is not required. At that time, the attorney representing the Trustee’s office advises the Court whether they support your case being confirmed (meaning, having the Judge give his/her stamp of approval so the case can move forward). Once your case is confirmed, your case successfully moves forward.

Once you case is confirmed, then you continue to make your monthly payment to your Trustee. If you prefer, we can arrange for your payment to be automatically deducted from your paycheck.