842 Route 25A, Northport, NY 11768
Chapter 13 Bankruptcy
Badanes Law Office will provide guidance throughout the entire Chapter 13 Bankruptcy process, ensuring you receive the necessary support and assistance. Bankruptcy can be a scary word, but, it doesn’t have to be. With our help we can get you through the bankruptcy process. Here are the general steps involved in a Chapter 13 Bankruptcy:
#1: Meet with the Badanes Law Office.
At the Badanes Law Office, we will schedule a meeting to provide a detailed explanation of the process. We will address any concerns or questions you may have, ensuring you are well-informed and prepared.
#2: Gather all your financial documents.
To proceed with your Chapter 13 Bankruptcy, it is crucial to gather all your financial documents. These documents will be presented to the Chapter 13 Bankruptcy Trustee, allowing them to accurately assess your financial condition. Additionally, you will need to complete a credit counseling class, which can conveniently be done online. Once we have obtained all your financial information, we will file your Chapter 13 Bankruptcy Petition. Subsequently, the Bankruptcy Court will assign a Trustee, usually an attorney hired by the court to represent your Creditors.
#3: Difference between a Chapter 7 and Chapter 13 Bankruptcy.
It’s important to note that Chapter 13 Bankruptcy differs from Chapter 7 Bankruptcy. In a Chapter 13, individuals with higher income levels repay some of their debts through a reorganization plan. The repayment plan typically extends for 3 to 5 years, during which priority debts, secured debts, and a portion of unsecured debts are paid off.
- The Trustee prioritizes repayment of “priority debts” such as monies owed to the Bankruptcy court, attorney fees, and State/Federal taxes.
- Secured debts, like mortgages and car loans, are typically paid in full.
- Unsecured debts, like credit card debts, are subject to partial repayment based on affordability.
#4: The Bankruptcy Court will also issue an “Automatic Stay.”
As in a Chapter 7 filing, The Bankruptcy Court will also issue an “Automatic Stay,”meaning all of your creditors (even ones that may not be ultimately discharged), must cease any and all collection practices, until your case is completed. All the calls, emails, texts and court proceedings stop immediately the day you file. As long as you maintain the Chapter 13 payments, the “Stay” remains in place.