Chapter 13 Bankruptcy Lawyers in Mandeville, Louisiana Help Clients Reorganize Their Debts

Thorough attorneys assist people who want to keep their property

Chapter 13 bankruptcy allows those who have steady incomes but are still struggling with debt to repay it over time. If you are in the Eastern District of Louisiana and need to stop your creditors, enlist the help of the experienced Chapter 13 bankruptcy attorneys of The De Leo Firm, LLC in Mandeville. Thousands of individuals file for relief under Chapter 13 every month, allowing them to keep their cars, homes and other prized possessions while still easing their debt burdens. We will guide you through the process so that you can achieve the relief you deserve.

Debtors filing for Chapter 13 bankruptcy in Louisiana must satisfy certain criteria

Chapter 13 is an option with certain limitations. First, unlike in a Chapter 11 bankruptcy, only individuals who are not stockbrokers or commodity brokers may file. Nevertheless, if you are a sole proprietor, although you can’t file in the name of your business, you can include your business debts in the bankruptcy. Secondly, you must submit proof that you filed your federal and state income taxes for the last four tax years. Thirdly, there is a limit to how much debt you may have. Although the amount allowed changes every three years, you are currently allowed no more than $1.2 million in secured debt (debt that is backed by collateral) and no more than $400,000 in unsecured debt. If we represent you, we can determine if you qualify and, if you choose this option, file the necessary paperwork on your behalf.

All bankruptcy petitioners in Louisiana need to complete approved credit counseling. When your case is filed, the certificate of completion will be included with the petition for bankruptcy relief. A petition that does not include this certificate will be dismissed, giving creditors the opportunity to take action against you and move forward with repossession or foreclosure. We will make sure you can get the certificate before filing your petition.

The advantages of Chapter 13 bankruptcy: asset protection and easier debt repayment

If you are struggling to pay your regular monthly bills and you need help, filing Chapter 13 bankruptcy may help you reorganize your debts into a monthly payment that you can afford. Unlike a Chapter 7 bankruptcy, Chapter 13 doesn’t involve a means test to qualify and doesn’t require selling off your assets. Your ability to repay all of your secured debts over time qualifies you, so you must have a predictable income source that allows you to pay off your debt while also paying your normal expenses. We will help you determine if you can satisfy this requirement.

For those who are dealing with a short-term financial setback like an illness, job loss or another unexpected expense, Chapter 13 may be the best solution. If you have fallen behind on your regular monthly bills and you have regular income, Chapter 13 bankruptcy may provide you with the space you need to keep your property and get your finances back under control. Many people who are looking to avoid repossession or halt foreclosures will turn to Chapter 13 bankruptcy because it provides them a means to catch up on all of the past-due payments over a three- to five-year span while keeping up with current payments on time.

Filing Chapter 13 stops creditor harassment

Once you file for relief under Chapter 13 bankruptcy, you will receive an automatic stay, which prevents creditors from trying to collect on their accounts. Legal action against you will cease and phone calls will be eliminated. Foreclosures, wage garnishments, lawsuits and repossessions are all put on hold thanks to the stay put in place by the bankruptcy court. If a creditor fails to abide by the stay, we can act to hold them accountable and seek damages.

What you need to do to Receive a discharge

Once the court approves your repayment plan, you must repay your debts on schedule for the next three to five years. Beyond making regular payments on your debt, you will also need to complete a financial management course before the trustee will grant your discharge. We will guide you through the process at each step so you can emerge in a better financial position going forward.

Chapter 13 is a better than an IRS Repayment Plan

In Chapter 13, nondischargeable taxes (usually three years old or less) must be paid in full within 60
months. However, once the bankruptcy petition is filed, the payment amounts freeze and do not
continue to accrue interest, penalties or late fees. Additionally, although some taxes may be
nondischargeable, penalties on those taxes are always dischargeable and do not need to be paid in
Chapter 13.

Chapter 13 allows Debtors to defer payment on Student Loans

While in bankruptcy, student loans are simply unsecured debt and treated the same as all other
unsecured debt (like credit card bills and medical bills). If you are struggling to keep up with student loan payments, Chapter 13 can provide a welcome relief for a three to five-year period of time. Although the student loan balances will not be discharged like other unsecured debt, chances are your income has increased over this period of time, making it easier when you emerge from bankruptcy to keep up with the monthly student loan payments.

Contact a dedicated Chapter 13 bankruptcy attorney in Mandeville, LA

The De Leo Law Firm, LLC, located in Mandeville represents Louisiana clients seeking debt relief through Chapter 13 bankruptcy. Call our office today at 985-685-1487 or contact us online to schedule a free consultation.

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