Bankruptcy (Debtor's Rights: Chapter 13)

Chapter 13 bankruptcy is very different from a Chapter 7 case. Where Chapter 7 discharges most of your debts, a Chapter 13 bankruptcy, requires you to pay all or a part of your debts according to a court ordered plan, which may last anywhere from three to five years. After a bankruptcy petition is filed, you'll also need to verify your income with the court by submitting your federal tax return for the previous year and proof that you filed federal and state tax returns for the previous four years. You must also file a Chapter 13 repayment plan showing how you propose to pay off the debts you are required to pay. After the plan is approved by the court, repayment must begin within 30 days. You will pay the trustee directly and he or she will distribute the money according to the approved plan. The court may, at its discretion, order that your monthly payments be automatically deducted from your wages to ensure payment. Your Chapter 13 plan must pay child support and alimony and certain tax obligations. Additionally, your plan must include your regular payments on secured debts, such as a mortgage on your home. After the above obligations are paid, the remaining amount paid to the court will be distributed among the unsecured creditors. The repayment plan will continue for three to five years, depending on whether your income is higher or lower than the median income for Pennsylvanians. If a plan cannot be reasonably completed due to a change in circumstance, the bankruptcy trustee may modify your plan. The trustee may, at his or her discretion, extend the plan period, reduce payments, give a temporary grace period, or, in the extreme cases, convert the case to Chapter 7 to facilitate a discharge. Once the Chapter 13 plan is completed, all of the remaining dischargeable debts will be discharged. Kaminsky, Thomas, Wharton, Lovette & Vigna will assist you in preparing your petition, filing a Chapter 13 plan, and monitoring the administration of your plan. If you have an appointment to meet with an attorney from Kaminsky, Thomas, Wharton, Lovette & Vigna to discuss bankruptcy, please download, read and sign the § 342(b) Notice and bring it to your initial consultation. NOTICE: WE ARE A DEBT RELIEF AGENCY THAT COUNSELS IN DEBT RELIEF. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.