Chapter 13 Bankruptcy

The Swenson Law Group specializes in assisting people with financial problems.  Attorney Mart Swenson and Attorney Evan Swenson and their staff have built a strong reputation for protecting the rights of clients ethically and competently while strictly specializing in bankruptcy and debtor/creditor law, while giving your case the personal attention it needs. Contact our office today at 1-800-934-0334.


YOU MAY CONSIDER A CHAPTER 13 BECAUSE….

You may have fallen behind on your mortgage, car payments, or owe back taxes to the government; therefore, a Chapter 13 bankruptcy may be your best option to catch up on these obligations and reorganize your debt. Filing a Chapter 13 bankruptcy allows debtors the ability to cure all arrearages (payments you have fallen behind on) on your mortgage, car loan, taxes, or domestic support obligations (such as alimony or child support).

Chapter 13 bankruptcy is also a good choice for people who want to keep property that they would otherwise lose in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you keep your property and repay some or all of your debts over a three to five-year period. You and Attorney Mart Swenson will establish your Chapter 13 repayment plan. The plan details what debts you repay, how much you pay each month during the repayment period, and what happens to your debts at the end of your case.

Additional reasons you may want to file for a Chapter 13 bankruptcy may include:

  • You owe more on your house than it is worth, usually due to a second or third mortgage
  • You either earn too much money (income exceeds what is allowed if you were to file a Chapter 7 bankruptcy), you have too many assets, or have too many debts that are non-dischargeable
  • You’re facing foreclosure and desperately want to keep your house, but are unable to become current on your arrearages
  • You don’t feel comfortable about not paying back at least some of your debts towards unsecured creditors, and want to make some attempt at doing so
  • You have co-signers which you want to protect from collection efforts

How a Chapter 13 Bankruptcy Works–disposable income vs. allowable expenses

A Chapter 13 plan is based on your disposable income; meaning the difference between your net income and allowable expenses. This means it is possible, for example, to have $200,000 in debt and make monthly payments of only $150 for 60 months. Using this calculation, you are only paying approximately 4.5% of your debt level.

The key to remember is that your monthly payments are based on your disposable income, not your debt level. Each case has circumstances which are different, but this example highlights the possibilities. You may realize that exploring a Chapter 13 bankruptcy is a critical part of your financial planning.

Minimizing Your Monthly Payments

The key to maximizing the benefit of a Chapter 13 bankruptcy is knowing how to minimize your monthly payments. This requires a strong understanding of how the process works and how the local trustee works. In a very real sense a Chapter 13 bankruptcy is part art form, part financial strategy, part legal expertise and part salesmanship.

There are a host of strategies that you can employ to minimize your payments, which makes consulting with an attorney critical.  Having qualified legal guidance can help determine the appropriate length and amount to be paid back during a Chapter 13 plan, based on your individual circumstances. Contact Attorneys Mart or Evan Swenson to review your financial situation and determine if a Chapter 13 bankruptcy is right for you.

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