Have a Roanoke, VA Chapter 13 Bankruptcy Lawyer from Giles & Lambert, P.C. Stop Foreclosure in Southwest Virginia and the Western District

Are you behind on the payments on your car or house? Worried you may not be able to keep them? Have equity in your house, but unable to refinance and pay off your bills? A Chapter 13 bankruptcy – or debt consolidation bankruptcy – may be the option for you!

Also known as the wage earner plan , all debts are combined and restructured in such a way that the debtor makes an affordable monthly payment to the Trustee, who uses this money to repay the debts. This debt consolidation is not a loan. It is a type of bankruptcy law which requires your creditors to take less money monthly over a longer period of time. And, best of all, at the end, the portion of unsecured debts you have not been able to pay are discharged or forgiven.

Unlike a Chapter 7, a Chapter 13 provides a way for the debtor to pay overdue student loans and taxes without additional interest and penalties, and get current on delinquent house and car payments while keeping these assets. Most unsecured debts, such as medical bills and credit cards, are be paid back at PENNIES ON THE DOLLAR, with the remainder of the debt wiped out.  Some secured debts, such as those for vehicles, can be reduced to the current value of the collateral or have interest rates reduced to a reasonable amount. Chapter 13 repayment plans generally last between three and five years.

How does a Chapter 13 Bankruptcy Work?

Chapter 13 bankruptcy is a financial reorganization plan that helps you repay your debts. Your payments under Chapter 13 go to a Bankruptcy Trustee, a court-appointed official who will administer your bankruptcy estate. The filing process, creditor notices, and hearings are similar to the Chapter 7 process. However, the terms and conditions leading to discharge are different depending on the agreement reached on each individual repayment plan.

If you're considering a Chapter 13 Bankruptcy, the first step is to call 904-1793 to schedule a free consultation in either our Roanoke or our Martinsville office.  If you've already consulted with one of our attorneys, and they've advised you to file a Chapter 13 Bankruptcy, here's what you can expect when preparing and filing your case:

• First, you'll need to make the initial payment to retain our services, as discussed in your consultation. At this point, we'll provide you with the paperwork we require in order to file your case. You'll have 60 days to gather the required information and return the completed paperwork to our office. The sooner you're able to turn your information in, the better, so don't hesitate to call our office if you have any questions.
• When a creditor calls after you've retained us, you have the right to refer them to us. We'll verify that you have hired us to file bankruptcy for you.
• Your second payment will be due when you return your paperwork. It may be helpful to schedule an appointment with your paralegal, so that you're able to discuss any information you lack or questions you may have.
• You'll need to complete the first round of required credit counseling. You have the option of completing the course online, through Hummingbird Credit Counseling, or over the phone, with Greenpath.
• It usually takes at least 2 weeks to review your bankruptcy information and type up your petition once you've returned your paperwork to our office. If your paperwork is incomplete, or if you neglected to disclose information, please be aware that the process can take longer.
• We'll contact you to schedule your signing, and your third payment will be due at this time. At the signing, you'll have the opportunity to review and verify your petition information. If all your information is correct, we'll discuss your options for a repayment plan, which will likely last between 3 and 5 years, depending on your income and expenses.  Once you agree to the plan's terms and sign your petition, we'll go ahead and file your petition with the court. You'll be assigned a case number and a Trustee. At this point, you'll be under the court's protection.
• You'll receive a notice from the court for your "Meeting of Creditors," or your "341 hearing" within 30 days of signing your petition. Your creditors will also receive this notice, and should stop attempting to collect outstanding debt.
• You'll need to complete the second round of credit counseling before your scheduled court date. When completed, please notify our office, so that we can file your certification of completion with the court.
• You'll need to begin your payments to the Trustee immediately. Contact our office within a few days after you sign, and we'll advise you of your case number and Bankruptcy Trustee so that you know the proper place to send your payments.
• At your court hearing, you'll need to bring a picture ID with you. The Trustee will ask you questions about the information contained in your petition -- it's the Trustee's job to confirm that all the information listed in your petition is fair and truthful. The whole process should be relatively short. Creditors may also go to this meeting to ask questions of the debtor, but they generally do not attend.

Many cases are dismissed because of the failure to making prompt payments to the Bankruptcy Trustee. Although most cases include payroll deduction, these do not take affect immediately. Do not wait for the payroll deduction to take effect to start making your payments to the Bankruptcy Trustee. You should keep a record of all your payments.

While fees for each case can vary, we try to work out reasonable payment plans that include the bankruptcy court filing fees, triple credit reports, homestead deed filing fees and your credit counseling and debtor education fees. When asking about fees with other law firms, makesure to know exactly what those quotes cover and what fees may be hidden!

If you think that bankruptcy is an option for you, these and other complexities dictate your first step should be to contact a bankruptcy attorney. Contact a Chapter 13 bankruptcy lawyer at Giles & Lambert, P.C. for a free consultation at one of the numbers listed below.

Stop Foreclosure. Stop Repossession. Stop Creditor Harassment.

CALL (540) 981-9000 NOW TO FIND OUT IF WE CAN HELP YOU!