Questions About Bankruptcy?
Contact Us.
Lacey Chapter 13 Bankruptcy Lawyers
| Questions About Bankruptcy? Contact Us. |
Serving all of Thurston County, Washington
Lacey Chapter 13 Bankruptcy Attorneys
(360) 753-5553
Eliminate your your debts. Keep your property.
Experienced and knowledgeable Lacey Chapter 13 bankruptcy lawyers fighting for you and your family.
Chapter 13 bankruptcy is preferred by people who are experiencing financial hardship, but do have some income, and one or more of the following apply.
1. Who have valuable assets they do not want to lose.
They keep the asset but pay the equivalent value as part of a 3 to 5 year plan.
2. Who filed a Chapter 7 within the past 8 years.
Under the new bankruptcy laws, they have to wait until 8 more years have passed since their Chapter 7 case was filed.
But if they have some income for a small Chapter 13 plan payment (like $100 per month), they can get bankruptcy relief only 4 years after filing a Chapter 7!
3. Who are about to lose a home in foreclosure
These days, this one of the most common Chapter 13 stories. We can stop the foreclosure, and make a plan that will let you keep your house, and catch up on missed payments over 3 to 5 years.
4. Who owe a lot of taxes to the IRS
We can help you put together a plan to pay the IRS some or all of the taxes back. The Automatic Stay protection of the Federal Bankruptcy Court protects you even from the IRS.
5. Who are being sued or garnished
A bankruptcy stops lawsuits and garnishments instantly, as soon as it’s filed. If someone sends the garnishment by accident after you file, the creditor has to give it back.
6. Who need protection from their creditors - whatever the reason
There are as many reasons for filing a chapter 13 case as there are people who file them. Our Lacey Chapter 13 bankruptcy attorneys will listen to you, and analyze the issues that are unique to you. Then we will craft a plan to help you achieve your needs.
HOW DOES A CHAPTER 13 BANKRUPTCY WORK?
Under federal laws, you can reorganize your debts under a chapter 13 bankruptcy.
Here’s an example of how a Chapter 13 reorganization works:
1. Here’s a story of an imaginary person, named Mary.
Someone comes in.
Mary has been out of work 12 months. She just landed a good job, but she’s in financial trouble because of the lay off.
She’s behind on her mortgage payment and has received a Notice of Foreclosure on her house, and it is going to be sold at a Trustee Sale in one month unless she does something. The house payment is normally $1,000, and she is 6 months behind, and with fees now owes $8,000. The mortgage company wants all $8,000 within 2 months, or they will continue the foreclosure.
She is about to go three months behind on her car, and is worried about a repossession. She owes $20,000 on the car, but now it’s only worth $10,000. She pays 15% interest.
She owes $40,000 in credit cards, had a minor surgery and owes $5,000 in medical bills.
She cashed out her IRA to survive after she lost her job, but did not withhold taxes, so now the IRS wants her to pay $3,000 in taxes.
She also has an income tax debt with the IRS from 5 years ago that she was making payments on until she lost her job. Now the IRS has sent her a Notice of Intent to Levy.
Here is an example of how one of our Lacey Chapter 13 bankruptcy lawyer might structure and affordable Chapter 13 Plan Solution:
1. We get the case filed, which stops all actions by creditors, and stops the foreclosure, the repo, and the IRS, even garnishments!
2. At the same time we file a Chapter 13 Plan that will propose to pay the current mortgage payment of $1,000, plus a catch up payment on the $8,000 in missed payments (you can choose between 36 and 60 months to pay it back: $8,000/36 months-- up to 60 months.
3. Also, the case will pay the car off through the Plan at $10,000 instead of $20,000, and at 5% interest. This will certainly lower the payments.
4. The Plan will pay the IRS off on the recent debt, without interest or penalties. ($3,000 paid off over 36 to 60 months, with no new interest or any penalties.)
5. If all she can afford is the payments above, then Mary will be able to pay just those things, and nothing more to the rest of her creditors.
6. At the end of the plan, her car will be paid off, the IRS paid off or discharged, and her house payments will be all caught up. All Mary will have left is her mortgage payment—all of the rest of the debts are gone forever.
This called a reorganization. Of course, every case is unique. After learning about your specific situation, one of our Olympia Chapter 13 bankruptcy attorneys will tailor a plan designed to maximize your relief under the Bankruptcy Code.
WHAT IS THE PROCESS?
1. Call, and we will schedule you in for a free consultation with an experienced bankruptcy attorney.
2. We will have you bring in documents and information about your assets, income, debts, and financial transactions.
3. The attorney will go over your situation, and use the documents to get more details.
4. Then the attorney will go over all of your options.
5. If a bankruptcy is right for your situation, we will open a file for you and begin to collect documents.
6. We accept payments towards attorney fees. Meanwhile, we will be gathering everything we need to put your case together, and having you do credit counseling (can be done on-line or on the phone) and fulfill other requirements.
7. As soon as all of the information is gathered, and you have paid the attorneys fees, we will prepare your case, including your chapter 13 plan.
8. We will have you come in and sign the 50-60 pages of federal court documents that we will prepare for you, including your Chapter 13 Plan. We go through each and every page with you to make sure it is all right.
9. We file your case electronically. The Automatic Stay of the US Bankruptcy Court goes into effect immediately. No one can foreclose on you, garnish you, call, or write to you about your debts.
10. You will have a Meeting of Creditors about 30-45 days after filing. We will be there with you. The Trustee who administers your case will ask you questions about your Plan and schedules and other documents. You will be ready because we will have prepared you.
11. Amendments and Plan changes. If the Trustee or one of the creditors wants something changed, you and your attorney will get it fixed or worked out.
12. One the Trustee thinks the plan is feasible (you have enough to pay off the plan you proposed) and that it treats your creditors the way the law requires, then they will recommend Plan Confirmation to the Bankruptcy Judge.
13. The Bankruptcy Judge will normally approve your Plan if the Trustee recommends Confirmation.
14. Your first plan payment is due 30 days after you file. It usually will come out as a wage deduction from your paycheck.
15. You complete your plan payments.
16. The Trustee closes up the case, and recommends a bankruptcy discharge to the Judge.
17. You get your discharge.
18. You have a new start, with cars paid off, taxes paid, the mortgage current, and the most of the rest of your debts gone permanently.
WHAT IF SOMETHING HAPPENS AND MY FINANCIAL SITUATION CHANGES WHEN I AM IN MY CHAPTER 13 PLAN?
Life happens, and you can amend or change your Plan to allow for the new child, the cut in pay, or other event. If things get really dire, you can convert the case to a Chapter 7 (as long as you did not file one 8 years before you filed the Chapter 13—otherwise you will need to dismiss and re-file a new Chapter 7 if the 8 years have passed).
If you get an inheritance or win the lottery, you can pay off the case in full, or dismiss it voluntarily and pay everyone back.
WILL I BE ABLE TO GET CREDIT AGAIN?
Yes, especially in this economy—so many people have had to file bankruptcy that is simply does not have the same reputation it use to have. Our clients are able to rebuild their credit quickly once they are reorganized. This is because the reorganization has improved your debt-to-income ratio by discharging most of your debts, and has freed up a lot of disposable income to reliably make payments in the future.
WILL I LOSE MY CAR/ HOUSE/PENSION IN A CHAPTER 13 BANKRUPTCY?
Not usually. You can keep your assets, and pay the non-exempt value of those into your Plan. A kind of trade-off. Sometimes, you may want to sell off an asset to pay a certain debt in your plan, like taxes.
Pensions and 401(K)s are exempt, so they don’t count in this calculation, not to mention you can keep them.
If you are receiving a pension, however, it will count as income.