General Information re: Chapter 13

LAW OFFICES OF JENNIFER REICHHOFF
14895 East 14th Street,
Suite 320
San Leandro, CA 94578
Tel.:  510-915-0595
Fax:  510-372-0209
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Chapter 13 bankruptcy allows debtors to reorganize their debts, typically over a 3-5 year period. Each month you make one payment to your Chapter 13 trustee, and what is included in that payment depends on the type of debts you have: 

MORTGAGES and PROPERTY TAXES

• You may be able to wipe-out 2nd or 3rd mortgages.
  
• Missed mortgage payments are repaid at 100% (however, if you are attempting a loan modification, it may be possible to structure a plan that does not repay the arrears). 
• Past-due property taxes and homeowner's association dues are repaid at 100%.
• Foreclosure proceedings are STOPPED. If your property has already been lost in foreclosure, the bankruptcy will not be able to get it back.
• If you are no longer is possession of the property or do not wish to keep it, you may also surrender it and the debts are treated similarly to credit card debt. 
  

VEHICLES

• If you have missed any car payments, you can keep the vehicle and repay it through your bankruptcy and possibly reduce the interest rate. (If you are behind on car payments, you are at risk for repossession, and it is recommended that you file a bankruptcy as soon as possible).
  
• You may be able to lower your car payment, even if you are current with the loan.
  
• If you purchased your car over 2 1/2 years ago, you may be able to reduce the interest rate and reduce the amount you owe against the car.
•  Repossessions are STOPPED. If your car was recently repossessed, you may be able to get it back.

TAX DEBTS

• Certain tax debts are repaid at 100% (this depends on the type of taxes, when they were due and when they were filed).
  
• Other tax debts may be paid back at as little as 0%.
• IRS collection actions are STOPPED.

UNSECURED DEBTS

• Credit card debts, medical debts, personal loans, etc. are repaid based upon your monthly budget and your assets; this can range from 0% to 100%, however the vast majority of of my clients repay between 0-10% of this type of debt.
• Lawsuits, judgments, wage garnishments, and bank levies are STOPPED.
• Student loans are not dischargeable in bankruptcy; repayment varies.
  
• Back child support and other back domestic support obligations are repaid at 100%, however it may be possible to make these payments outside of the bankruptcy

*Interest payments may be required on certain types of debts.

Chapter 13 has many of the same benefits of Chapter 7, however Chapter 13 is more versatile and allows you to include more types of debts in the bankruptcy. Your monthly payment plan will be based on: the types of debts repaid, your monthly budget, the value of your assets and the length of the bankruptcy. The Law Offices of Jennifer Reichhoff will discuss with you what your Chapter 13 plan payment will include and what a Chapter 13 bankruptcy will mean for you. 

Chapter 13 Filing Process:

Filing a Chapter 13 is almost identical to filing a Chapter 7, and many of my clients are surprised by how relatively easy the process is (they often say that finally deciding to make an appointment is the most difficult part). Once you contact my office, we will schedule your free consultation at a convenient time for you. My office offers weekend and evening appointments. Although I always recommend coming in for a face-to-face appointment, sometimes that is not possible, for instance you have medical issues, suffer from anxiety or are unable to miss work, and so phone consultations are available.

At your appointment, we will discuss your assets (property you have), debts, income and expenses. In order to give you the best advice, you should have a general idea about your financial situation (i.e. the year, make and model of your car, approximately how much you owe against your home, the approximate total of your credit card debt, your monthly income, etc.). We will discuss what your Chapter 13 plan will likely look like, what debts would be included, and I am often able give you a rough estimate of your (minimum) plan payment. If you are not sure about some your information, I will do my best to advise you, however my advice and recommendations may change once you have provided the specific information. You are not required to bring in any paperwork to your free consultation, but if you have any questions about paperwork that you have received, please bring it with you. 

You will also be given a packet at your appointment. It will include a checklist of the information you will need to provide in order to prepare your case, some reading materials, and letters you may send to your creditors once you have retained my services. If you chose to retain my services, you may do so at your free consultation or at a later date, however a case will not be filed until you have provided all of the required paperwork and paid all fees. Attorney's fees are set on a case-by-case basis, and I will be able to set your fees at your free consultation. 

Once your case is prepared and your fees have been paid, you will review and sign your documents, and then your case will be filed with the court. Your first Chapter 13 plan payment will be due within 30 days of filing your case, and a meeting with your trustee will be set for approximately 30 days after your case is filed. From the date of filing to the date of discharge, the process for a Chapter 13 is typically 3-5 years (assuming that you have completed all of the required steps).