There are two different common forms of bankruptcy which can be used for individuals who have become overwhelmed with debt. Chapter 13 is known as the reorganization chapter of bankruptcy, which may be appropriate if you cannot keep up with your debt, but have a reliable source of income. At Enderton & Mathews, LLC, we can help you get control of your finances and your financial future.
Unlike Chapter 7 bankruptcy where the Trustee can liquidate your non-exempt assets, Chapter 13 is less drastic. With Chapter 13, you can usually keep your property. One of the misconceptions about chapter 13 is that you are required to pay back all of your creditors through a manageable payment plan. The Truth is that most chapter 13 cases do not require any payment to unsecured creditors. Most Chapter 13 cases cure mortgage delinquencies, pay for automobiles based upon the crammed down value (you only pay the value, the balance becomes unsecured and is discharged) and priority debts such as taxes and past due child support. Unsecured debt is usually discharged upon completion of the chapter 13 plan payments. Filing for this chapter of bankruptcy is an effective way to reorganize your debt while allowing you to keep nearly all of your assets.
Chapter 13 bankruptcy law requires that a plan be proposed that is then confirmed by the court. A chapter 13 Trustee reviews the plan and will often object to portions of the plan. The attorneys at Enderton & Mathews understand the complexities in the law and will be able to successfully propose a plan that complies with the bankruptcy code and will be confirmed. The 2005 amendment to the bankruptcy code also requires that debtors file a “means test.” The means test is essentially a hypothetical budget that was implemented by Congress to force people who have over-median income to file a chapter 13 and, where the means test shows there should be excess income in the budget, dictates how much has to be paid to unsecured creditors. The means test has limits on what can be taken as an expense. Enderton & Mathew attorneys have attended national and local seminars about the means test. We also have a great deal of experience preparing the means test and making sure that you take each and every expense that is allowed on the “means test.”
Our centrally located Salt Lake City Chapter 13 bankruptcy lawyers are available to meet with you and help you determine if filing for Chapter 13 bankruptcy is right for you. We understand that filing for bankruptcy can be a confusing and stressful process, and we are here to offer you support and guidance every step of the way. Our firm believes that you should not have to suffer or give up your possessions just because your debt has become overwhelming.
To set up a free initial consultation, contact our firm at (801) 701-8644. Our centrally located Salt Lake City Chapter 13 bankruptcy attorneys are ready to answer your questions.