Flawless Bankruptcy Preparation Plus
Hover here to preview The Labyrinth
Chapter 13 bankruptcy is a bankruptcy of last resort. File chapter 13
bankruptcy only if you do not qualify to file chapter 7. This can be the case if
you have recently filed chapter 7 and cannot file another chapter 7 right away or if
you have a mortgage in default and you need time to get caught up with the back
Chapter 13 is usually filed by people who are faced with the threat of
foreclosure and have a sizable unpaid mortgage arrearage. This is because under
chapter 13, you are allowed to pay off back payments on secured debts such as
mortgages and car loans over a 3 to 5 year period. This allows you to get caught
up with the back payments while keeping up the regular monthly payment.
In order to file chapter 13, you have to have income and enough of it to
repay the debts. So if you are out of work or do not have enough income to keep
up with the regular monthly payments, you will not qualify to file chapter 13.
Here is an example of how it works: Lets say you owe $20,00 on your car;
$300,000 on your mortgage. Let us also suppose that your regular monthly
payments on the mortgage is $1,000 ; your regular monthly car payment is $250
and that you are 6 months behind on both your mortgage and auto payment, (in which
case your mortgage arrearage is $6,000 and your auto payment arrearage is
Here is how this would work under a 36 month payment plan:
paid thru trustee
into 36 months)
||250 x 6 = $1,500
||1,500/36 = 0
||1,000 x 6 = $6.000
||6,000/36 = 167
In addition to the above figures, the trustee adds interest and their own
administrative fees to the monthly payments made through them.
If you are faced with the possibility of losing your house, being able to
repay the arrearage as shown above would be a good thing. On the other hand, if
you are not behind on your mortgage but just have a heap of credit cards,
medical bills and unsecured debts, you are better off not repaying them. You
want to get rid of them in one step using chapter 7, rather than dragging out the
misery for 3 or 5 years in chapter 13.
Also, because chapter 13 takes so long to complete, you cannot hide it from
your credit report and you cannot start to remove it from your credit until the
3 or 5 years are up. The other thing that happens is that most chapter 13s do
not go the distance. Even though you are given 3 to 5 years to pay off the
arrearage, if you are having serious money problems that are causing you to file
chapter 13, those same money problems will cause you to miss more of the regular
payments while in chapter 13, until you fall out of chapter 13 altogether, with
more debt that you started with.
If you still want to file chapter 13, we can help you. Chapter 13 shares most
of the same forms as chapter 13 except that it has a repayment plan. The
repayment plan is the document in which you propose to the court which debts you
want to pay through the trustee and how much you want to pay them. Chapter 13
repayment plans vary from district to district and there is no official federal
form for the plan. Each court district handles the plan in its own way and there
is no one plan form approved for use nationwide. In some districts, each trustee
has his or her own requirements for preparing the plan. For these reasons, we do
not fill out the plan for you. Instead, we give you at no cost, your district's
version of the plan, along with the online data tools to help you complete it. Also,
all the court web sites give you a download of their own plan form. Once we have
prepared your chapter 13 documents, it is easy for you to complete the one or two
page plan, even by had if you prefer.
Because you are filing chapter 13 and not chapter 7, we do not include The
Labyrinth. The Labyrinth is of no use in chapter 13 but makes all the difference
in chapter 7. Also, for chapter 13, we do not guarantee the discharge since the
goal of chapter 13 is usually not a discharge but a repayment. For chapter 13,
we guarantee that you will be able to file our formsv or your money back. Other
than this, our offer in chapter 7 applies to chapter 13.
I just wanted to start out by saying...
How awesome your service was for my wife and
We did everything you asked of us and everything went very smooth.
Our BR was finalized a
little over a month ago. I need to know if this system works as well for people living in
Oklahoma? My sister really needs help from your system as well. Thanks for any input that
you can give. Scott & Carrie. PS: We're so glad that we listened to you instead of everyone
else about the student loans and back taxes because they were both written off. Thanks
- Scott, Klamath Falls,
Find out more..
Actual Results - View actual results of debts
How It Works - See all the steps to a successful
"I'm very impressed with your level of expertise and customer service."
In fact, I am writing an ebook about my online bankruptcy experiences to share with the world.
- Mae S., Okmulgee, OK
If you need more time to make your mind, take it. Bankruptcy should not be
rushed into. Just click
here to bookmark this site so
that you can find us again when you are ready since we do not always advertise.
(Click here for chapter 7)