The Debt Repayment Plan
While Chapter 7 is the most common type of bankruptcy, it is not the best choice for everyone. If you have assets which exceed your exemptions, or if you make too much money to qualify for Chapter 7, Chapter 13 bankruptcy may be a good option.
At the Law Office of Kevin J. Magorien, we understand dealing with financial problems is difficult. Our goal is to help clients in King, Pierce and Snohomish Counties find debt relief solutions which enable them to rebuild their financial health.
How Does Chapter 13 Bankruptcy Work?
In Chapter 13 bankruptcy, all of your unsecured debt is combined into one monthly payment, determined by your ability to pay, and you make payments over a period of three to five years. A trustee will transfer your payments to your creditors. After the specified timeframe is over, any remaining unsecured debt is discharged.
While your secured debt is not discharged, many people find that once their unsecured debt is reduced, they are more easily able to pay their other bills.
Benefits of Chapter 13 Bankruptcy
As with Chapter 7, as soon as you file Chapter 13 bankruptcy, all creditor harassment and wage garnishments must stop. Further, Chapter 13 can:
- Freeze a foreclosure — It allows you to develop a structured payment plan and keep your home.
- Set up a tax repayment plan — While most taxes cannot be discharged, Chapter 13 gives you the chance to create a more reasonable payment plan than what tax authorities would offer. Also, you may be able to eliminate some penalties.
- Grant a strip-down of secured debt — You may be able to reduce secured debt to the actual value of an asset while retaining the property.
How Can a Lawyer Help?
Because bankruptcy rules are complex, you need an experienced attorney to help you through the process. During a free consultation, we will evaluate your financial situation and advise you as to whether or not bankruptcy is right for you.
If you choose to move forward, we will develop a repayment plan that suits your circumstances and work to obtain confirmation of the proposed plan. Since Washington forces Chapter 13 filers to choose between state and federal exemptions, we will determine which allows you to retain more of your assets. Rest assured, we will be by your side throughout the matter.
Contact us online or call our office at 253-656-4934 or toll free 866-633-4992 to schedule a meeting. We charge an hourly fee for Chapter 13 bankruptcy. Flexible payment plans are available.
Our office is located next to the King County Superior Court Regional Justice Center in Kent. Free parking is available.
We have basic Spanish-speaking skills.
