Seattle Bankruptcy Attorneys Helping Consumers File Chapter 13

Filing for Ch 13 Bankruptcy With our Experienced WA Attorneys

Washington Bankruptcy Lawyers Explaining Chapter 13 Filings

The people of Washington State are suffering through terrible economic conditions much like everywhere else. As a result, more and more people find themselves in financial situations that seem to offer no way out from under mounting stress and anxiety. Fortunately, there are options for relief for just about every situation. One of those options for some is a Chapter 13 bankruptcy filing.

Below you’ll find information regarding the basic nature of filing a Chapter 13 bankruptcy, the immediate benefits that the person filing will enjoy, a brief overview of the process involved with completing a Chapter 13 bankruptcy case and finally information regarding how you should proceed if you would like to take steps to end your financial stress with the help of an experienced Seattle bankruptcy lawyer.

The Nature of a Chapter 13 Bankruptcy Filing

A Chapter 13 bankruptcy filing is generally known as a wage earner’s bankruptcy because it usually involves a debtor – which is the person who is filing the case – who has some sort of stream of steady income available. This income forms the basis of the process for eventually eliminating debts that are accrued and that which cannot be paid off within any foreseeable time frame.

Generally, the process of filing a Chapter 13 bankruptcy case involves the initial step of the debtor gathering all of his or her financial information with the help of a Seattle bankruptcy attorney, as a close analysis of finances will be the necessary first step in the process. Information that’s always relevant in these situations includes pay stubs or other documentation that indicates income, a list of debts and credit accounts whether they are current or delinquent and any other documentation that indicates what a person’s worth and debt total happen to be at the time the Chapter 13 bankruptcy case is explored. From there, the process of obtaining bankruptcy protection begins.

The Process Involved With a Chapter 13 Bankruptcy Filing

After the financial information has been gathered, a debtor must complete a credit counseling briefing from a counselor or agency that’s been approved by the United States Bankruptcy Trustee. When this certificate of completion is obtained, the debtor then completes the schedules of finances and a petition that’s presented to the court. The filing of this documentation is where the case actually begins.

When the court receives this documentation, it responds by issuing an Automatic Stay on all of the creditors that are listed in the petition. This Automatic Stay is basically an order from the court that prevents creditors from continuing collection efforts that are listed on the petition. Therefore, it’s at this point that the debtor realizes that the collection calls stop, the letters begin to disappear and general peace is restored.

In addition to issuing the Automatic Stay on all listed creditors, the court also informs those creditors of the date of what is known as a 341 Hearing, which is a meeting at the court between the creditors, bankruptcy attorney, the debtor and the trustee. The court also notifies the creditors of a deadline for filing any objections to the specifics of the debt listed on the petition and schedules or to the repayment plan.

The repayment plan is basically a proposal that’s put forth by the debtor. This plan does not need to be filed at the same time as the original petition, but it must be filed within 15 days of the filing of the bankruptcy protection case. This plan takes the debtor’s income into account and apportions some of that income to pay off the debts listed over time, and plans usually last between three and five years.

At the 341 Hearing, creditors are invited to object either to the nature of the debt that is entered on the schedules or to the specifics of the payment plan, and the debtor testifies under oath that the information provided is true and accurate. After the hearing, the court will usually take a few weeks to issue a final decree. When this final decree is issued, the payments on the plan begin. Assuming that all of the payments on the plan are paid, the remaining amount of debt that exists with creditors is discharged when the time has run on it.

How a Seattle Bankruptcy Lawyer Can Help

While it may seem simple to progress through a Chapter 13 bankruptcy filing, the reality is that there are several technicalities, standards and norms that must be followed in order for the case to proceed smoothly. Any mistakes can delay or even derail a case that’s filed, which only allows creditors to resume their collection efforts.

Rather than risk this occurrence, those who need to find a way out from under their financial stress should take no chances by seeking the help of an experienced Seattle bankruptcy attorney. If you’re ready to put this situation behind you once and for all, contact Phillips Law Firm today to schedule a free initial consultation.