For those who are considering filing for bankruptcy, it is important to understand the differences between filing Chapter 7 bankruptcy and filing Chapter 13 bankruptcy.  The main difference between the two lies in your income, debts and economic goals. Where Chapter 7 eliminates all unsecured debt, it requires that you have almost no disposable income. By contrast, Chapter 13 is for people who have some income. It does not eliminate debt but reorganizes it so that you are provided with a repayment plan over time. In Chapter 13 bankruptcy you can retain almost all of your property. If you are uncertain as to which kind of bankruptcy is the best option for you, or which you are eligible for, contact the Philadelphia Chapter 13 lawyers at Reinherz Law. We have been advising clients as to the best way to approach bankruptcy for many years, and we can help you as well.

As your Philadelphia Chapter 13 lawyer, Reinherz Law will help you through every step of the process, making sure that all of your paperwork is properly completed and filed. We will make sure that you are always apprised of what is going on and understand what to expect, answering all of your questions along the way to provide you with a sense of control when you need it most.  The typical steps and requirements of filing for Chapter 13 bankruptcy are:

  • Taking a credit counseling course within six months of filing. The course must be offered by an agency approved by the U.S. Trustee’s office.
  • Preparation of the bankruptcy petition, as well as a detailed repayment plan that meets all legal requirements. The Philadelphia Chapter 13 lawyers at Reinherz Law can help you assemble all of the forms, schedules and petitions, as well as to formulate an acceptable plan.
  • Filing the petition and forms, along with your most recent tax return and evidence of having filed for the last few years.
  • A trustee will be appointed to administer your case and ensure that it is legal and that all measures are in place to return payments to your creditors.
  • A stay will go into effect to keep creditors from pursuing collection actions.
  • You will make your first payment on the repayment plan before the plan has been approved.
  • A 341 meeting with your creditors will be scheduled by the bankruptcy trustee.
  • A confirmation hearing will be held in court. Creditors may object to the plan.
  • Once the plan is confirmed, you are required to make all payments and continue to submit proof of income and expenses.
  • You will need to take a debtor education class.
  • When your repayment plan is completed your case will be closed and your debts will be discharged.

These steps may seem straightforward, but they can be complex and confusing without the assistance of a knowledgeable experienced Philadelphia Chapter 13 lawyer by your side. Call Reinherz Law to set up an appointment to discuss your situation.

Learn more from our Philadelphia Chapter 13 Lawyer HERE.

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