A New Start Through Reorganization
Located in Aiken, South Carolina, attorney Andrew Marine helps clients obtain debt relief in a variety of ways. One of the most common questions clients ask is which type of bankruptcy--Chapter 7 or Chapter 13--is the right choice for them.
Making that determination is not easy. The answer depends on many factors, and the advice of a bankruptcy lawyer is essential to understanding your rights and obligations in a bankruptcy.
Chapter 13 Bankruptcy: The Basics
Unlike the liquidation procedure of Chapter 7, Chapter 13 Bankruptcy involves the development of a three- to five-year debt repayment plan and is most useful when a client currently has or expects to obtain the assets or wages to make future payments.
To obtain Chapter 13 bankruptcy protection, a petitioner, among other requirements, must:
- Petition for a Chapter 13 bankruptcy in good faith
- Demonstrate that the petitioner can afford to make the required payments under the plan
- Prove that all disposable income is being applied to the plan
- Provide for payments under a reorganization plan through voluntary deductions from wages
- Make full payment of priority claims
- Offer to make payments under the plan that would provide creditors a greater amount of
payment than if the petitioner's assets were liquidated under Chapter 7
- Pay secured creditors the fair market value of their collateral or negotiate their acceptance of the plan
- Pay all mortgage payments and make any overdue payments owed to the lender
Chapter 13 also has some advantages over Chapter 7 including:
- Allows you, in many cases, to keep your home
- No waiting period to re-file for bankruptcy
- Allows the discharge of more types of debt
Obtain the Advice of an Experienced Chapter 13 Bankruptcy Attorney
Whether a Chapter 13 bankruptcy is appropriate for your situation depends on a variety of factors. Attorney Andrew Marine will help you determine whether bankruptcy is appropriate for you. If you decide to file for bankruptcy, federal law requires you to obtain credit counseling, and you must also satisfy a means test. All of these details will be discussed at your an initial consultation.
With a consultation fee of $40, payable in cash at the time of the appointment, Mr. Marine will conduct an hour-long meeting with you to discuss your entire financial situation, review all relevant documentation such as recent pay stubs and outstanding debts, and decide how to eliminate the frustration and anxiety caused by severe financial problems. To schedule a consultation, please contact the firm.