Chapter 13 bankruptcy is commonly known as the “Wage Earner’s Plan” or “Organizational Bankruptcy”. As the name implies, some or all debts will have to be repaid albeit under the direction and protection of the bankruptcy court. After the long overdue reforms to the Bankruptcy Code in 2005, bankruptcies filing became harder to complete, more expensive and required credit counseling both before and after the filing. The changes can be complex, but Fort Wayne bankruptcy lawyers can assist you with the details.

Fort Wayne Bankruptcy lawyers offer the following points about Chapter 13:

Secured debts cannot exceed $922,975 Unsecured debts cannot exceed $307,675 Income must be sufficient to repay debts as structured by the court. Must complete credit counseling and provide certificate to court along with filing package. Virginia bankruptcy services can provide you with a list of approved counseling agencies. Must submit previous year’s tax return and proof taxes were paid to court. Pay filing fee of $274.00 Chapter 13 payments must commence within 30 days after case is submitted to court. Payments must be made to trustee or deducted from payroll check if income is regular. If average monthly income over the last six months is higher than the state median income, a five year plan is proposed. If average monthly income over the last six months is lower than the state median income, then a three year plan is proposed. If unavoidable circumstances prevent timely payments, Fort Wayne bankruptcy lawyers will intervene and ask that the court review and possibly adjust your plan. In the case of extreme hardship, for instance the closing of the only production plant in a small town, the court may completely discharge your debts. If the court will not modify your plan nor dismiss your debts, then you may convert to a Chapter 7 plan, or absolute bankruptcy, to discharge all your debts. Chapter 13 ends when the payment plan is completed. All debts eligible for discharge will be discharged. Proof must be presented of successful completion of financial management training (not to be confused with the training required before the case is filed), and you are current on all child support and alimony payments.