Filing Chapter 13 Bankruptcy in Wausau

Chapter 13 bankruptcy is a legal process that enables individuals with steady income to develop a repayment plan, spanning three to five years, to gradually settle their debts. This type of bankruptcy offers a fresh start to those struggling with overwhelming financial obligations.

Advantages of Chapter 13

After understanding what Chapter 13 bankruptcy entails, it’s important to consider the advantages it offers individuals with overwhelming debts.

One major advantage is the ability to keep important assets, such as a home or car, while still working towards paying off debts.

Chapter 13 also provides a structured repayment plan, allowing individuals to make manageable monthly payments over a period of three to five years.

This can provide a sense of stability and control in a difficult financial situation.

Chapter 13 Bankruptcy Eligibility

To be eligible for Chapter 13 bankruptcy, individuals must meet certain criteria based on their income, debt levels, and ability to repay their debts.

Chapter 13 bankruptcy is designed for individuals with a stable income who can create a repayment plan to pay off their debts over a period of three to five years.

This type of bankruptcy is often chosen by individuals who want to keep their assets and catch up on missed mortgage or car payments.

How does Chapter 13 work?

Chapter 13 bankruptcy works by allowing individuals with a stable income to create a repayment plan to pay off their debts over a period of three to five years.

This plan is based on the debtor’s ability to make regular payments to a bankruptcy trustee, who then distributes the funds to creditors according to the terms of the plan.

Chapter 13 provides a structured way for individuals to repay their debts and regain financial stability.

The Chapter 13 Plan and Confirmation Hearing

The Chapter 13 plan outlines the terms and conditions for individuals to repay their debts and is subject to a confirmation hearing. During this hearing, the bankruptcy court will review the proposed plan and determine its feasibility.

The process involves the following steps:

  1. The debtor submits the Chapter 13 plan, which includes a detailed repayment schedule and the proposed amount to be paid to creditors.
  2. The court examines the plan to ensure it meets legal requirements and is realistic.
  3. If the court approves the plan, it becomes binding and the debtor must adhere to its terms to successfully complete the Chapter 13 bankruptcy process.

The Chapter 13 Bankruptcy Discharge

Upon completion of the Chapter 13 repayment plan, debtors may be eligible for a discharge of their remaining debts. A discharge in Chapter 13 bankruptcy means that the debtor is no longer legally obligated to pay the debts included in the plan.

However, not all debts may be dischargeable, such as certain tax debts and domestic support obligations. It’s important for debtors to consult with their bankruptcy attorney to understand the specific debts that can be discharged.

The Chapter 13 Bankruptcy Hardship Discharge

After completing the Chapter 13 repayment plan, debtors may be eligible for a hardship discharge, relieving them of their remaining debts.

Here are three key points to understand about the Chapter 13 bankruptcy hardship discharge:

  1. Relief: The hardship discharge provides a fresh start to debtors who face unforeseen circumstances, such as illness or job loss, that make it impossible to complete their repayment plan.
  2. Criteria: To qualify for a hardship discharge, debtors must demonstrate that circumstances beyond their control have made it impractical to continue with the repayment plan.
  3. Remaining Debts: While the hardship discharge eliminates most debts, certain obligations, such as child support and certain tax debts, aren’t dischargeable and must still be paid.

Hiring a Chapter 13 Bankruptcy Lawyer

When navigating the complexities of filing for Chapter 13 bankruptcy, it’s crucial to seek the assistance of a knowledgeable and experienced bankruptcy lawyer.

Hiring a Chapter 13 bankruptcy lawyer can provide individuals with the guidance and support needed to successfully navigate the legal process and achieve a favorable outcome.

From helping with the preparation and filing of necessary paperwork to representing clients in court, a bankruptcy lawyer can offer invaluable expertise and ensure that their clients’ rights and interests are protected throughout the bankruptcy proceedings.

Call Us Today for Assistance

If you’re considering filing for Chapter 13 bankruptcy in Wausau, it’s essential to hire a qualified lawyer to assist you through the process.

Here’s why you should call us today for assistance:

  1. Expertise: Our experienced bankruptcy lawyers have in-depth knowledge of Chapter 13 laws and regulations.
  2. Guidance: We’ll guide you through the complex paperwork and legal procedures, ensuring you make informed decisions.
  3. Support: Our team will provide emotional support and reassurance during this challenging time.

Get in touch with us today

Recognize the importance of choosing cost-effective yet high-quality services for filing Chapter 13 bankruptcy. Our expert team in Wausau is prepared to assist you with all aspects of the filing process, whether it involves comprehensive guidance or minor adjustments to enhance the effectiveness of your bankruptcy plan!