Chapter 13 Bankruptcy in Beaver

Much like Chapter 11 bankruptcy, Chapter 13 bankruptcy allows a debtor to reorganize liabilities and construct a plan for paying its debt.  Unlike Chapter 11, Chapter 13 is available only to individuals, not companies—and only to individuals who meet the following requirements:

• The debtor has a regular income.
• The debtor has no more than $360,474 in unsecured debt.
• The debtor has no more than $1,081,400 in secured debt.

Chapter 7, Chapter 11, and Chapter 13 bankruptcies are all available to individuals struggling with debt.  Each chapter is different and has its own advantages and disadvantages.  Paula J. Cialella is a Beaver Chapter 13 bankruptcy attorney who has the experience to determine which type of bankruptcy proceeding, if any, is the best fit for your circumstances.

The process of Chapter 13 in Beaver County

A qualifying individual begins the bankruptcy process by filing a petition with the bankruptcy court.  Filing for Chapter 13 bankruptcy automatically halts any collection or foreclosure actions pending against the debtor.  As with Chapter 11, an individual who files for bankruptcy under Chapter 13 in Beaver County must submit a repayment plan to the court—in this case, within 15 days of filing.  The plan must explain what payments the debtor will make to creditors during the period of repayment.

While the creditors may not always recoup the full amount owed, a Chapter 13 bankruptcy plan must ensure that creditors receive a certain minimum amount and that the debtor uses all disposable income to pay creditors.  While creditors may file objections to a proposed plan, unlike Chapter 11 bankruptcy, the creditors in a Chapter 13 bankruptcy do not approve the plan and cannot file their own plans.

Once the repayment period begins, the debtor makes periodic payments to a trustee appointed by the court.  That trustee then distributes the payment to the appropriate creditors.  Once the debtor makes all required payments stipulated in the plan, the court discharges the debtor from any further obligation to repay the debts addressed by the plan, subject to some exceptions.

Advantages of Chapter 13

Chapter 13 bankruptcy in Beaver County has some distinct advantages over other bankruptcy proceedings.  Unlike Chapter 7, Chapter 13 allows debtors to pay their debts while still retaining most of their property.  And unlike Chapter 11, Chapter 13 allows debtors some control over designing their repayment plans, and it does not require approval from creditors.  In addition, a Chapter 13 filing stays—or delays—foreclosure proceedings and can allow debtors to keep their homes.

We can help you

Beaver Chapter 13 bankruptcy attorney Paula J. Cialella represents clients in:

Contact the firm online, or call 1-888-328-2108, to schedule a risk-free, no-fee initial consultation.  We look at your documents, discuss your situation and your legal needs, and begin to devise a solution that works for you.