Bankruptcy, Debt Negotiation, Wills & Personal Injury Representation

Chapter 13 Bankruptcy: Bankruptcy For Above-Median Income Households In Louisiana

Chapter 13 bankruptcy eliminates the filer’s debts after a court-dictated repayment period. While bankruptcy does not eliminate all debts, it is effective at eliminating most unsecured debt, such as medical bills, credit card debt and more.

What’s more, when it comes to Chapter 13 bankruptcy, you’re able to undergo the bankruptcy process without losing property that would be seized under Chapter 7 bankruptcy.

At The Cook Law Firm, APLC, our bankruptcy attorneys provide clients in Haughton, Shreveport and all across Louisiana with experienced representation and services throughout the bankruptcy process. In this resource, we will be providing you with an overview of Chapter 13 bankruptcy.

How To Qualify For Chapter 13

If it’s determined that you make more than the median income in your area, then your case will move to the next step of the Chapter 13 bankruptcy means test. In this step, your reasonable monthly expenses will be subtracted from your income to determine how much you’d be able to pay toward your debts.

You should also note that if you make less than the median household income in your area, that doesn’t mean you’re ineligible for bankruptcy. Instead, it means that you’d simply qualify for a different type of bankruptcy: Chapter 7.

How Chapter 13 Works

Chapter 13 bankruptcy allows you to keep your nonexempt property while working toward debt resolution. Once you’re eligible for Chapter 13 bankruptcy, you can begin the official process. To better understand the Chapter 13 bankruptcy process, consider the following steps:

  • Any bankruptcy case begins with a debt counseling session. This ensures there are no solutions outside of bankruptcy to resolve your debt issues.
  • After determining bankruptcy is the logical solution, file documents with the bankruptcy court under penalty of perjury. These documents set the foundation of your case and schedule meetings and hearings.
  • Subscribe to a court-ordered payment plan to compensate lenders. This plan typically lasts between 36 and 60 months.
  • Pay the entirety of your disposable income according to the repayment plan.
  • Meet with your bankruptcy trustee monthly throughout the process. The trustee oversees the process and ensures you follow the agreed-to plan.
  • Be aware that lenders have a period to petition your case and submit claims to get paid from your case.

Throughout this process, it’s very important that you work closely with experienced bankruptcy attorneys. At The Cook Law Firm, APLC, we can help you file your documents correctly and protect your interests.

The Chapter 13 Bankruptcy Timeline

Once that is settled, a plan confirmation takes place to address any objections and finalize your plan, and you begin making payments as scheduled for the assigned time period. The first payment is due 30 days from the day you file. Assuming you make your payments and there are no complications, as your payment plan comes to an end, you’ll need to participate in a financial management course to prepare you for restructuring your finances after bankruptcy.

Then, the magic moment of discharge happens – any remaining debts under your bankruptcy plan are discharged and you’ve completed the process.

Why You Should Consider Chapter 13

Clearly, Chapter 13 bankruptcy isn’t for everyone due to its qualification requirements. However, if you have seemingly insurmountable debt but are making more than the median household income for your area, you should definitely consider this option.

There’s no shame in bankruptcy. It’s a system designed to provide individuals and businesses with a responsible way to overcome debt and reinvent their financial situation. Whether you’re struggling with disruptive credit collection or simply aiming to become debt-free, bankruptcy can be a powerful tool to help you achieve your financial goals.

More Than 125 Years Of Combined Bankruptcy Assistance Experience

While bankruptcy offers an invaluable opportunity to fix your finances, it’s also a complex legal process. From understanding the process to filing paperwork and negotiating in court, there are many moving parts that require dedicated attention and experience.

That’s where The Cook Law Firm, APLC, comes in. For decades, we’ve practiced bankruptcy law in Louisiana, providing reliable services statewide and beyond. Our bankruptcy lawyers have the knowledge and experience to handle all aspects of the process. Moreover, our team of professionals is personable, making the process understandable and less stressful.

If you’re considering bankruptcy or want to learn more, call 318-703-5851 or complete our online form. We’ll answer your questions clearly and, if you’re ready to proceed, we’ll be there every step of the way.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.