Our Oklahoma Chapter 13 Bankruptcy lawyer can help you with your debt problems. Chapter 13 allows individuals who have steady incomes to reorganize and get rid of certain debts. The debt you owe is paid off under the protection and administration of the court. Generally, people who file a chapter 13 do so because their income is to high to qualify for a chapter 7. Another reason may be that they are behind on their mortgage and facing a foreclosure. Regardless of your reason chapter 13 can be a great option for certain people with debt.
Chapter 13 Basics
Under Chapter 13, you file a bankruptcy and a proposed payment plan with the U.S. Bankruptcy Court. Payment plans provide for re-payment of debts to certain creditors over 3 to 5 years. The amount of the payment is determined after your Oklahoma chapter 13 bankruptcy lawyer evaluates your monthly disposable income. The disposable income is the amount of money remaining after you pay all of your monthly expenses. Those expenses include your current rent or mortgage, car payments fuel and all other normal living expenses. A potion of whats left over is paid to your creditors. This is paid until the bankruptcy plan is complete.
The best feature of Chapter 13 is that if you’re facing a foreclosure, or the repossession of other secured assets, filing the case will stop the foreclosure. The court will require you to make your normal payment and catch up the late payments over the course of the chapter 13. The late payments are required to be paid in full within the five year length of the plan. Your Oklahoma chapter 13 bankruptcy lawyer will work with your mortgage holder to determine the amount of your past due payments.
What if My Income Changes
If your income changes in the middle of your repayment plan your payment might also change. This is because your disposable income will have gone up or maybe down. The fact that you can modify the payment is great for you. Especially if the income falls and it falls to a level that qualifies for a chapter 7. If this happens to you you might be able to convert the case to a chapter 7. This requires that you submit all of your new income amount and get the approval of the bankruptcy trustee in your case.
Free Chapter 13 Bankruptcy Consultation:
If you’re facing financial difficulty our Oklahoma chapter 13 bankruptcy lawyer may be able to help you. People face financial difficulty for a wide range of reasons. Most times the reason they face the problems has very little to do with them. A chapter 13 bankruptcy is a law designed to protect consumers and get them back on their financial feet.