Chapter 13 Bankruptcy Services in Little Rock, NLR, Bryant, Sherwood, Maumelle, and other surrounding areas

The payment plan is the hallmark of this type of bankruptcy law and it helps you fight against repossession and fight against foreclosure. It may include a reorganization plan for your mortgage and vehicles, as well as an amount designated for unsecured creditors, child support, past-due taxes, past due mortgage amounts, and more. 

By creating such a plan to repay all or part of your debt, it makes all the debts more affordable for the individual and provides a more convenient way to pay child support, income tax, car payments, etc. over time, and to create a settlement plan for mortgage.

Chapter 13 gives individuals an opportunity to save their homes from foreclosure. By filing under Chapter 13, individuals can stop foreclosure proceedings and may be able to cure delinquent mortgage payments over time. Another advantage is it allows individuals to reschedule secured debts and extend them over the life of the Chapter 13 plan. Individuals will have no direct contact with creditors while under Chapter 13 protection.  

A chapter 13 case begins by filing a petition with the bankruptcy court. You must also file: 

1. Any assets and liabilities 
2. Current income and expenditures  
3. Executory contracts and unexpired leases 
4. A statement of financial affairs 
5. Certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling 
6. Evidence of payment from employers
7. A statement o f monthly net income and any anticipated incease in income or expenses after filing
8. A record of any interest you have in federal or state qualified education or tuition accounts

You must provided a copy of your tax returns or transcripts for the most recent tax year. The court will charge a case filing fee as well as a administrative fee.

In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs and schedules, you must compile the following information:

1. A list of all creditors and the amounts/nature of their claims
2. The source, amout and frequency of your income
3. A list of all your property
4. A detailed list of your monthly living expenses

When you file Chapter 13 bankruptcy, you will be required to make monthly payments to a Chapter 13 Bankruptcy Trustee for between 36 to 60 months. That money is then distributed by the trustee to those of the debtor’s creditors that have filed claims. The payment amount is determined by the types of debts, amounts owed, debtor’s income, as well as reasonable and necessary expenses of the debtor.