What is Chapter 13 Bankruptcy

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When you file for bankruptcy you have two options: Chapter 7 or Chapter 13 Bankruptcy. Chapter 13 Bankruptcy is a type of bankruptcy that helps reorganize a filer’s debts while protecting the applicant from the looming threat of debt collection, repossession, and foreclosure. Through an agreed upon repayment plan and over the course of three to five years, the debtor makes feasible repayments to their creditors. Contingent on the successful completion of this payment plan, all qualifying debts are discharged. Examples of non-qualifying debt include child support and student loan debt. Often referred to as the wage earner’s plan, you can acquire a debt-free future while still maintaining protection of the life you know and love. Assets such as your car or your home are protected as you go through Chapter 13, providing stability and security.

Chapter 13


Once you declare bankruptcy through Chapter 13, immediate relief kicks into effect with an automatic stay, prohibiting creditors from acting against you or making pesky collection phone calls to your number. There are many reasons why some people opt into filing for Chapter 13 and try to enjoy its extensive benefits. Chapter 13 is often the right course of action for those who have filed for Chapter 7 previously or who do not qualify for Chapter 7. Filers seeking to avoid foreclosure on their homes or safeguard against seizure of their car often find Chapter 13 to be the most beneficial option. If your income is stable, you have a substantial disposable income, or your income is too high to qualify for Chapter 7, then filing for Chapter 13 could deliver you out of financial trouble.

Filing for Chapter 13 might be the path towards financial stability that you have dreamed of, especially if you want to minimize disruption to your life. Determining if filing a claim is your easiest way to acquire a fresh start is best done with the help of a trusted attorney that can be found here at Hoglund Law Bankruptcy.

The Difference Between Filing Chapter 13 and Debt Settlement

It is imperative to understand the substantial differences between filing for Chapter 13 and Debt Settlement to discern which track will deliver you to debt relief. Debt Settlement is a common solution for filers that do not qualify for Chapter 13 due to eligibility requirements imbedded in Bankruptcy laws. While both options require you to make some level payments to your creditor through a repayment plan, many clients end up paying less through Chapter 13 than Debt Settlement. Debt Settlement lowers the total amount owed by negotiating directly with your creditors. Conversely, Chapter 13 simply demands payments through a three- to five-year plan before remaining debts are discharged.

In addition to paying less through Chapter 13, it is also preferable in that it does not result in tax consequences. While these two methods are both solutions to the same problem, eligibility usually dictates which solution is pursued. If you seek to protect a large inheritance, Debt Settlement may still be the superior resolution. Additionally, Debt Settlement may report for a shorter period and has a more minimal impact on your credit report.

Determining eligibility and ultimately concluding if Chapter 13 is more advantageous to you than Debt Settlement can be complex without the helping hand of a trusted Bankruptcy Attorney. Finding aid at Hoglund Law guarantees that we will either send an attorney in to fight for you in debt negotiation or you will have a partner by your side through your filing process. Getting the help you need in constructing your game plan for pursuing financial freedom has never been as easy as it is here at Hoglund Law.

Is Chapter 13 Right for You?

Several factors could ultimately decide if filing for Chapter 13 Bankruptcy is superior to Chapter 7 and Debt Settlement for your personal case. When you sit down for a free consultation at Hoglund Law, we dive deep into your background, ensuring no details are lost, to identify which plan will bring you relief.

We could select a Chapter 13 over Chapter 7 if you have a steady and secure income with the potential to keep up with a set repayment plan for three- to five-years and your debts are dealt with more effectively in Chapter 13 than Chapter 7. Furthermore, if you meet eligibility requirements and have the goal of protecting against foreclosure of a home or seizure of a car, Chapter 13 is the solution. Because filing for Chapter 13 is a longer process, you must abide to the rules for a longer time period. However, just because Chapter 7 is a more common solution to financial troubles does not mean it is the best solution for you.

Chapter 13 typically allows for you to pay a lower total amount than through Debt Settlement. Furthermore, unlike Chapter 13, Debt Settlement does not protect you with automatic stay from your creditors acting against you or interest fees building up on your debts. Chapter 13 can deliver incredible results if eligibility is met and you are guided through the process with the counsel of an experience attorney.

Navigating the differences after the outcome of your case and comparing the pros and cons with your individualized situation is a daunting task when handled alone. While the differences in methods for debt relief may seem minimal, selecting the best solution as soon as possible is the first step in achieving your financial goals. When you come into Hoglund Law for a free consultation, you will walk away with a bankruptcy plan and a new lease on life.

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How We Can Help

Bankruptcy laws are overwhelming enough to give anyone a headache due to their expansive and intricate nature. Consequently, partnering yourself with our team of valued attorneys who have dedicated the past three decades to becoming experts on the Chapter 13 Bankruptcy Code is the best way to ensure you are equipped with the best legal advice.

At Hoglund Law, we do things a little differently. We make ourselves accessible to you from financial insecurity to financial freedom, not merely from filing to discharge. While many other firms solely aid until discharge, Hoglund Law stays with you until you meet your financial goals. With credit counseling, credit report screening, and post-discharge assistance,  our goal is for you to enjoy the full benefits of debt relief.

If you are searching for a law firm boasting thirty years of excellence in delivering exceptional legal aid in the Bankruptcy process, look no further. Book a free consultation in any of our offices to begin your first step towards the debt-free life you desire.

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