Chapter 13 can be a powerful tool to reorganize your financial standing. Not only can it immediately stop a foreclosure, garnishment or lawsuit, but it can also be used to remove second mortgages, get back a driver’s license or pay the principal amount only of tax debt, instead of penalties, too. Take advantage of the experience and expertise of Travis A. Gagnier, Attorney at Law in Federal Way, WA and receive a thorough consultation before filing for Chapter 13.
A Chapter 13 plan usually results in almost no payment to unsecured creditors like credit cards and medical bills, but instead focuses on paying on debts you have to pay anyway like the mortgage, car payment or taxes. It is a common misconception that Chapter 13 requires full payment of creditors, as it almost never does.
Attorney Gagnier will sit down with you during your consultation and go over your available options. Whether you have a high or low income, we will help you set up a Chapter 13 payment plan that fits your current budget. Usually the plan lasts five years and will greatly reduce your monthly debt payments. Often we can eliminate or reduce interest and penalties on much of the debt, and discharge unsecured debts like credit cards, collections and medical bills, so that your plan payments are affordable.
Your Monthly Payment Plan is Determined by:
- Average monthly expenses
- Average monthly income
- Nature and amount of your debts
Is Chapter 13 Reorganization For You?
Now that you have a basic understanding of the processes involved with Chapter 13 bankruptcy, you may be wondering whether this solution is right for your situation.
Chapter 13 Reorganization is Recommended if:
- You have achieved 100% payment of secured debts, but fail to meet payments for unsecured debts.
- You require the restructuring of your auto loans as a means of saving a vehicle.
- You need to repay the mortgage arrears (or back payments) that have accumulated for your home.
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