13 EligibilityChapter 13 is a bankruptcy for an individual, including one who is engaged in
a business, who has a regular source of income and who, because of
insolvency must reduce her debts to a percentage of what they were before. The
Chapter 13 debtor repays the percentage under a plan which she has the exclusive right to propose.
Chapter 13 is also known as a "wage earner" bankruptcy. It is most
appropriate for people can't pay their bills, but don't liquidate with
ease under Chapter 7.
A bankruptcy case under Chapter 13 is very different from Chapter 7
liquidation, inasmuch as someone filing under Chapter 13 remains in
possession of her property. Upon the confirmation of a Chapter 13 plan all of
the debtors property, both real and personal vests in the debtor, rather than in
a bankruptcy trustee as in Chapter 7.
Finally, to be eligible for Chapter 13 relief a bankruptcy debtor's secured
debts must total less than $922,975, and her unsecured debts must total less than
$306,675.
Super Discharge
A discharge under chapter 13 is more comprehensive than that under chapter 7.
In a chapter 13 case you can discharge debts incurred by fraud and false
pretense, marital equalization obligations and fines and penalties. Let's
say for example that you borrowed as much as you could shortly before filing a
bankruptcy. Such load ups are considered by bankruptcy courts as "Fraudulent" ,
although in all probability as an ordinary law abiding citizen, you never
considered at as so. In a chapter 13 case you could discharge the portion that
is not paid by the percentage in your plan. In a Chapter 7 you could be stuck
repaying the debt in full.
WHY REORGANIZE
The filing of a Chapter 13 protects the debtor from any collection action on
the part of creditors while the debtor carries out the plan and discharges the
balances that the plan does not provide for at the end of the case. A confirmed
plan binds the debtor and every creditor, regardless of whether a creditor has
accepted or rejected the plan or has objected to confirmation of the plan, or
whether his claim is provided for by the plan.
Chapter 13 permits the debtor to pay debts that can't be discharged in either
chapter, like recent taxes or back child support; to cure defaults on home
mortgages; and to eliminate that part of a lien that is greater than the value
of the asset at the beginning of the case.
Reorganization allows you control over your creditors. Even your
mortgage holder must obey orders of the court concerning how and when mortgage
arrears are to be paid
The Meeting of the Creditors
Every one who files a Chapter 13 bankruptcy case must attend a court hearing called the "Meeting of the Creditors".
This is the time for the Chapter 13 trustee to examine the bankrupt individual concerning the petitions
and schedules that they filed with the court.One of our lawyers represents
you at this hearing. Because of the large number of cases that we have filed we
are thoroughly familiar with each trustee and his particular policies. We
thoroughly prepare for each hearing we attend. As a
result we earn the good favor of the trustee's by making their job easy. It also
means that you don't have to come back a second time and third times for
adjourned hearings.
Bankruptcy Discharge
A bankruptcy discharge provides the individual with financial freedom
that they seek when they file their case. The bankruptcy stay becomes a
permanent injunction at the time of the discharge. No one can collect or
enforce a debt that has been discharged in a
bankruptcy proceeding. | 
