An Overview About Chapter 13 Bankruptcy Process and How A Lawyer Can Help
You must be aware that your eligibility toward a Chapter 7 bankruptcy is testified through a ‘means test’ process in accordance with the federal law and as per the order of the court where you appeal for bankruptcy. In order to find your capability to clear dues of creditors out of your current income, the Means Test is instituted. Once your earning is found inadequate, your filing for Chapter 7 bankruptcy may be granted. Under this process, creditors are paid through liquidation of you processions. Nonetheless, when you don’t qualify for Chapter-7 based on the means test, a qualified law group like Olympia Law PC can help you attain the provisions under Chapter 13 bankruptcy.
In fact, Chapter 13 bankruptcy is designed for debtors who don’t meet the criterion of Chapter 7. Considering own position one can apply for chapter 13 directly. When someone try for chapter 7 and don’t qualify, he must appeal immediately for Chapter 13 if he wants saving his home from foreclosure as per court order. Secondly, when one apply for 13; he can make an option to keep the assets with him that he wants, before the Trustee decides to liquidate them. Similar to Chapter 7 bankruptcy, Chapter 13 is described as ‘repayment’ bankruptcy. Basically, under this process, a debtor is asked to repay a certain portion of his debts over a time period like 3-5 years. The portion of debt that left after completion of the repayments may be fully or partly discharged. This is where Olympia Law PC can help you greatly by acting on your behalf and appeal for the repayment schemes that suit you best.
Similar to Chapter 7, as a debtor under Chapter 13, you require attending a 341 meeting together with the Trustee and all Creditors. The meeting process is more or less similar with Chapter 7 where your attorney associates Olympia Law PC accompanies you. Prior to the meeting, they also educate you about the dos and don’ts at the meeting. In chapter 13 bankruptcy proceedings, the most complex part is evaluation and calculation of repayment program. As per the law, the repayment plan must confront to certain factors or conditions and that should be agreed by the Trustee as well as the Court.
The process of calculation is typically a difficult part and it needs certain loans to be paid in full. As debtors try to keep the monthly repayments in the lowest possible side, the Trustee wants to make settlements as quick as possible with higher installments. Once again, this is the place where debtors require assistance of most seasoned lawyers of Olympia Law PC. They are specialist arbitrators who undertake different types of strategic ways to keep you monthly payment as low as possible. Needless to say, this is the basic reason why debtors should hire services of long experienced law practitioners or companies. Once most payments are cleared or settled as per Chapter 13 repayment plan, a debtor can apply in court for a complete discharge for the remaining part of debt.