The present housing market, soaring medical costs and rising gas prices have sent many individuals and families into financial crisis. If you are unable to pay your mortgage, and creditors don’t stop calling, it is time you need to essentially seek advice from a chapter 13 bankruptcy lawyer in Atlanta.

Chapter 13 Bankruptcy, What Is It All About?

Chapter 13 Bankruptcy law enables individuals to repay some or all of their debts under a bankruptcy repayment schedule of 3-5 years. While Chapter 7 Bankruptcy involves liquidation of all unsecured debt, Chapter 13 Bankruptcy does not automatically discharge debts, but allow individuals to keep some of their belongings.

Filing for Chapter 13 Bankruptcy helps to stop home foreclosure repossessions, proceedings and end wage garnishments or creditor calls. In order to file Chapter 13 Bankruptcy, an individual should essentially have a constant source of income to meet bankruptcy repayment schedule requirements.

Working of Chapter 13 Bankruptcy:

With Chapter 13 Bankruptcy, individuals are required to create a bankruptcy repayment schedule and will require making the payment to the trustee. All the outstanding debts will be prioritized and paid according to the bankruptcy law. After opting for Chapter 13 Bankruptcy, debts will not be discharged instantly, but by the end of the bankruptcy schedule.

Why do you need Chapter 13 Bankruptcy Lawyer Atlanta?

Filing for personal bankruptcy has become more difficult with the new bankruptcy laws. By filing Chapter 13 Bankruptcy, many individuals who may be eligible for Chapter 7 Bankruptcy will now be forced to repay some or all of their debts.

Present bankruptcy is governed by centralized rules and regulations. Although you can file for bankruptcy on your own, it is always recommended to opt for Chapter 13 Bankruptcy Lawyer.

Bankruptcy confirmation is required under the United States Bankruptcy Code for all debtors filing Chapter 13 protection. Commonly referred to as “reorganization bankruptcy”, debtors must submit proposed repayment plans at the time of filing or within 15 days of petitioning the court.

The purpose of bankruptcy confirmation hearings is to ensure debt repayment plans adhere to new bankruptcy laws. Chapter 13 payment plans must include payment amounts to each creditor along with payment dates.

Once bankruptcy refinance plans are approved, debtors submit payments to the court Trustee. Chapter 13 payments are generally paid on a bi-monthly or monthly schedule. Trustees distribute payments to creditors until debts are repaid.

Shortly after bankruptcy petitions are filed, notification to creditors is sent out to inform them of the bankruptcy filing and scheduled date of the 341 creditors meeting. 341 meetings give debtors the opportunity to meet face-to-face with creditors and explain their financial situation and ability to repay debts. Creditors can agree to accept a reduced payoff, lower interest rates, or remove late fees and penalties.

Information obtained at creditor meetings is given under oath. Debtors who provide false information are subject to criminal charges and their petition of bankruptcy will be denied.

In 2005, Congress enacted new bankruptcy laws which have made filing bankruptcy protection more difficult. The Bankruptcy Abuse Prevention and Consumer Protection Act require debtors to repay a portion of their debt and undergo credit counseling.

Few people can abide by BAPCPA regulations without legal counsel. Unfortunately, locating bankruptcy attorneys has become more challenging and expensive because the new laws hold lawyers accountable for information provided by their clients.

Several bankruptcy lawyers changed to other legal fields; leaving a deficiency of lawyers willing to assist with petition filings. Those who have remained in this field of law charge higher fees to cover increased business insurance premiums and potential litigation fees.

Debtors filing for Chapter 13 bankruptcy are required to undergo the means test to determine the amount of debt to be repaid. The means test compares debtors’ income to that of their states’ median income level.

When income is equal to or greater than median levels, debtors must file Chapter 13 and develop a confirmed debt reorganization plan. If income falls below median income, debtors might qualify for Chapter 7 which discharges all outstanding debts.

Bankruptcy repayment plans typically extend between three and five years. Debtors are prohibited from incurring new debt during the repayment period without court authorization. Chapter 13 payments are in addition to normal household expenses. One unexpected expense could cause debtors to fail out of bankruptcy.

If debtors are unable to adhere to bankruptcy repayment plans, creditors can petition the court seeking dismissal. If approved, debtors lose protection from the court and creditors are allowed to proceed with collection actions.

Bankruptcy confirmation can help debtors overcome financial hardships. However, individuals should become informed about the advantages and disadvantages of this action. Research bankruptcy alternatives including: debt consolidation, debt settlement, credit counseling or budgeting, to determine if similar results can be achieved.

Filing bankruptcy is always a complex and stressful procedure that should be both well considered and well prepared.  If your bills have become insurmountable and you need to file chapter 13 bankruptcy, you should be aware of the fact that there are a number of mandatory requirements you must meet before filing bankruptcy.  Failure to meet these requirements will result in the court refusing your chapter 13 bankruptcy.  It is evident that meeting these mandatory requirements before filing bankruptcy is the first important step on the journey to what will be, if all goes well, a clear financial future.  So what are these mandatory requirements exactly?
The first thing every consumer must do before filing bankruptcy is take a credit counseling class at a government-approved credit counseling agency.  This class must be taken within 180 days prior to filing bankruptcy.  It is vital that you file the certificate of compliance that attests you have, in fact, completed the credit counseling class.  If you are unable to take the class within the determined time period, you may be able to file for an extension, but only if you can prove you tried to obtain the class within the last five days before filing bankruptcy.  If an extension is granted, you must take the class and file the certification within 30 days after filing bankruptcy.

The second requirement you must meet before filing bankruptcy is to take the so-called means test.  This means test is key in determining whether you need to file chapter 7 or chapter 13 bankruptcy.  The means test examines your income level against a state-determined median, and determines the amount of disposable income you have which may or may not be sufficient, when filing bankruptcy, to support the repayment plan included in a chapter 13 bankruptcy.  Because the median income differs from state to state, the income level associated with a chapter 13 bankruptcy also differs from state to state.  A third requirement you must meet before filing chapter 13 bankruptcy is that you avow all documentation and information submitted to the court is well grounded in fact, and warranted by existing law or a good faith argument for the modification of the existing law.  If you are filing chapter 13 bankruptcy this means that you declare to know and understand the chapter 13 bankruptcy laws that apply when filing bankruptcy.  If you claim ignorance of the chapter 13 bankruptcy laws at any point during your chapter 13 bankruptcy filing, it will not count as an excuse.  Due to this pre-required knowledge of chapter 13 bankruptcy law, it is always in your best interest to retain the services of an experienced chapter 13 bankruptcy lawyer before filing bankruptcy.

Chapter 7 bankruptcy law is also known as liquidation. It allows the debtor to pay off debts by selling of his assets and dividing the proceeds among his creditors. A special court officer known as a trustee in the is appointed. In the states of North Carolina and Alabama, he/she is known as the bankruptcy administrator. These two have the same responsibilities of monitoring the filed cases and supervising the activities of the debtor and the creditor

Cases under this chapter begin with the debtor filing a petition in court. They must also submit financial records to back up the need of filing a petition. These records include a current balance sheet, an income statement and a financial statement. They must also submit a summary of tax payment to the trustee.

The court, once a petition has been filed charges some fees. These fees are paid to the court clerk once the petition has been filed. However payment may be paid in not more than four installments and the full amount should be completed by the end of four months. These fees are meant for paying the trustee’s surcharge, miscellaneous court charges and also the filing fee. In cases where the debtor is not in a position to pay the fees even in installments, the court may decide to waive the charges completely.

Once the court charges have been fulfilled, one has to fill out a form. This bankruptcy form shows a list of creditors, the amount and frequency of the debtor income, a net amount of living expenses and assets that the debtor has. They are what determine the kind of ruling the jury will give.

Chapter 12 or the family farmers or family fishermen is a repayment plan for farmers and fishermen with regular incomes. It may not be restricted to farmers and fishermen only since it may also cut across partnerships and corporations. For this last category, one of the partners should be a farmer or fisherman or should have relatives in the field. The percentages of the debt acquired from farming or fishing activities will also qualify or disqualify this group from filing a case under this chapter.

A bankruptcy discharge is a special treatment of the debtors property which in most cases prevents both the debtor and the creditor from having claim over property meant to pay a debt. This means that the creditor is not allowed to recoup the property and the debtor too is not allowed to have any claims on the property in question. Before a discharge has been issued it is normally important that the debtors go through a counseling session to allow them gain knowledge on how to deal with handling debt and managing cash flow. This is done irrespective of whether or not the debtor will pay up or not.

Just like in chapters 7 and 13, there are categories of debt that are not discharged and these include those acquired for child support, mortgages, alimony and those assets that are obtained out of fraud or false presentation. The chapter 12 bankruptcy laws are complex and anyone willing to go this way should first contact experts on the matters.

In circumstances where the debtor is not in a position to fulfill the conditions of the bankruptcy discharge conditions, the hardship discharge is issued. This is issued if only the debtor has been unable to pay his debts due to unavoidable circumstances.