Kailua’s Top-Rated Chapter 13 Bankruptcy Lawyers

In Chapter 13 bankruptcy, you typically do not lose your property as long as you adhere to the terms of your repayment plan. Unlike Chapter 7 bankruptcy, which may involve liquidation of assets to repay creditors, Chapter 13 allows you to keep your property while restructuring your debts. Your repayment plan outlines how you will catch up on missed payments for secured debts like mortgages and car loans over a period of three to five years. As long as you make payments as agreed and fulfill the terms of the plan, you can retain ownership of your property throughout and after the bankruptcy process. However, failure to comply with the repayment plan could lead to the loss of protected assets or conversion to Chapter 7 bankruptcy, where liquidation of non-exempt assets may occur. It’s crucial to work closely with our bankruptcy lawyers to ensure your assets are protected and your repayment plan is feasible.

If you’ve missed a payment on your Chapter 13 repayment plan, our lawyers can provide essential assistance by immediately communicating with your bankruptcy trustee to address the situation. They can assess the reasons for the missed payment, potentially negotiate a modified repayment schedule or file a motion with the court for a plan adjustment. Additionally, they can advise on legal strategies to protect you from creditor actions and ensure compliance with court requirements. The expertise can help navigate the complexities of Chapter 13 bankruptcy, minimizing the impact of missed payments and working towards a successful resolution of your financial obligations.

During Chapter 13 bankruptcy, obtaining new credit can be challenging and requires court approval. Typically, you must seek permission from the bankruptcy trustee and obtain court approval for any new credit agreements. Most creditors are hesitant to extend credit to individuals in active bankruptcy, as it represents a heightened risk. However, some lenders may offer secured credit cards or loans with high interest rates to individuals in Chapter 13, aimed at helping them rebuild credit. It’s essential to consult with your bankruptcy lawyer before pursuing any new credit opportunities to ensure compliance with court requirements and avoid potential complications in your bankruptcy case.

The long-term effects of Chapter 13 bankruptcy on your financial health can be significant. While it provides a path to manage and ultimately discharge debts, bankruptcy remains on your credit report for up to 7 years from the filing date. During this time, obtaining new credit at favorable terms may be challenging, and you may face higher interest rates or stricter terms. However, successfully completing the repayment plan can demonstrate financial responsibility and improve your credit score over time. It’s essential to rebuild credit cautiously and seek financial guidance to mitigate the impact of bankruptcy on your long-term financial health.

Yes, Chapter 13 bankruptcy can stop foreclosure proceedings and help you keep your home. When you file for Chapter 13, an automatic stay goes into effect immediately, halting any ongoing foreclosure process. This provides immediate relief and gives you the opportunity to propose a repayment plan to catch up on missed mortgage payments over a period of three to five years. As long as you adhere to the terms of the repayment plan and continue making payments, you can prevent foreclosure and potentially save your home. It’s crucial to work closely with a Kailua bankruptcy lawyer to ensure your repayment plan is feasible and compliant with court requirements to effectively halt foreclosure.

Chapter 13 bankruptcy can impact your tax obligations in several ways. Debts owed to the IRS or state tax authorities can be included in your Chapter 13 repayment plan, allowing you to catch up on overdue taxes over time. This can provide relief from immediate tax collection actions such as liens or levies. However, certain tax debts, such as recent income taxes or payroll taxes, must be paid in full through your Chapter 13 plan, though penalties and interest may be reduced or eliminated. Our bankruptcy attorneys can help you understand how Chapter 13 bankruptcy specifically affects your tax obligations and to ensure compliance with tax laws during and after bankruptcy.

During Chapter 13 bankruptcy, you are typically required to attend court hearings at specific points in the process. Initially, you must attend a meeting of creditors (341 meeting), where you’ll answer questions about your finances under oath. This meeting is typically scheduled within 30 to 45 days after filing your bankruptcy petition. Additionally, you may need to attend a confirmation hearing where the court reviews and approves your proposed repayment plan. Subsequent court appearances may be necessary if there are disputes or modifications needed to your plan. Your bankruptcy lawyer will advise you on when and where you need to appear in court and prepare you for these proceedings.