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• I’ve
heard of people speak of Chapter 7 & Chapter 13. What
are they referring to?
United States bankruptcy laws provide for various types of bankruptcies.
However, most individuals file under Chapter 7 or 13.
Under Chapter
7 the debtor gives up his non-exempt, (generally, your living necessities
and household furnishings are considered exempt) property to a trustee
who then sells it and gives the money to the creditors.
Under Chapter
13, the debtor is allowed to keep everything he has provided &
he agrees to pay his disposable income into a court-approved plan
for a period of 36 to 60 months.
• How
is Chapter 13 different from consumer credit counseling
services?
Private consumer credit counseling can not force a creditor to
cooperate or reduce payments. Because Chapter 13 is a Federal law,
the court can require a creditor to accept less. It is this power
that allows the debtor to reduce his total monthly payments under
his plan.
• Can
the bank take what I have under Chapter 13?
No. This is one of the best things about Chapter 13. Generally,
you may keep everything you have unless you chose to give it up
to a creditor. Giving it up will affect the amount you pay under
the plan.
• How
much will I have to pay each month?
The amount you pay into the plan each month is determined by
subtracting your monthly living expenses from your monthly income.
•
How long must I pay this amount?
A Chapter 13 plan can not be for less than 36 months nor more than
60 months. The length of your plan will depend on the amount you
owe, the value of the assets securing the debts and the amount of
your monthly payments.
• What
happens if I lose my job?
You can ask the court for a temporary suspension of your payments
or you can convert to a Chapter 7.
• Are
all of my debts released under Chapter 7 or 13?
Most are, some are not. Tax debts, alimony and child support
debts, and student loans are the most common which are not forgiven
under Chapter 7 or 13.
• Can
my creditors continue to call me after I have filed bankruptcy?
No. Your creditors must stop trying to collect their debts once
you have filed.
• What
do I need to file?
Copies of your most recent paycheck stubs, the amount of your
income for the past 3 years and a complete list of all your creditors,
giving their names, addresses, account numbers and the amount owed
to each. For installment loans you should contact the bank and obtain
a payoff. The payoff is usually less than the balance.
After
gathering all of this info. fill out the contact us form or call
us at 1-888-234-5313.
Law
Office of Gregory Dekeyzer
301 Julia St. • New Iberia, LA 70560
Phone:
337-367-0214 • Fax: 337-367-9395
Toll Free: 1-888-234-5313
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