Winston-Salem Chapter 13 Bankruptcy Attorneys

Chapter 13 bankruptcy is a reorganization process in which debtors commit themselves to paying  debts pursuant to a confirmed plan over the course of three to five years, depending on income and feasibility.  Filing Chapter 13 in Winston-Salem typically allows debtors to retain their property and stop harassment from creditors, while systematically paying debts.  For those considering filing Chapter 13, an experienced bankruptcy attorney from Allman Spry Leggett & Crumpler, P.A. can help formulate a realistic repayment plan for approval by the court and creditors.

Understanding Chapter 13

In a Winston-Salem Chapter 13 filing, the debtor establishes a repayment plan with his or her attorney.  The Chapter 13 Trustee will review the plan and submit the plan to creditors.  Creditors may object to the plan if they wish.  If objections are filed, a confirmation hearing will be held.  The court makes the ultimate decision regarding whether to confirm the plan.

After approval, the debtor may make certain payments directly to creditors,  However, the debtor will likely make a monthly payment to the Chapter 13 Trustee, who will then distribute payments to creditors.  Once the debtor has completed his or her plan, as long as the debtor is otherwise eligible for a bankruptcy discharge, the court discharges certain remaining debts.  Long term, secured debts, such as mortgage loans, will continue to be paid by the debtor following the conclusion of the bankruptcy case.  Additionally, some types of debts are not dischargeable through bankruptcy.  These include the following:

• Student loans
• Most civil and criminal restitutions
• Domestic support payments

Who should file Chapter 13?

Bankruptcy is not the right solution for everyone, and each type of bankruptcy is different.  Some reasons for filing Chapter 13 rather than Chapter 7 include the following:

• You have an income that exceeds the median income for your household size in your applicable state and you do not qualify for Chapter 7
• You have the ability to repay your debts
• You have debt that cannot be discharged in a Chapter 7 filing but is eligible for discharge in a Chapter 13 filing
• You have property you wish to keep that would not be exempt from liquidation in a Chapter 7 filing
• You plan to cure arrearages on a mortgage to avoid foreclosure
• You plan to cure arrearages on a vehicle loan to avoid repossession
• You have certain tax obligations and would benefit from a structured repayment plan

To file for Chapter 13, you must have a regular income that will allow you to feasibly pay your debts in accordance with an established repayment plan.  While Chapter 7 bankruptcy is available to corporations and partnerships, Chapter 13 is restricted to individuals or sole proprietors.  Bankruptcy law and procedures are complicated, but qualified bankruptcy attorneys can help people choose the best means of getting through a financial crisis.

Contact a Winston-Salem bankruptcy attorney

If you are considering bankruptcy, contact a firm committed to the highest level of client service, and with a proven record of getting results.  For more information, contact the bankruptcy attorneys at Allman Spry Leggett & Crumpler, P.A.  We serve clients in the Winston-Salem, Greensboro, High Point (Piedmont Triad) area, and throughout North Carolina, South Carolina, the entire Southeast and nationwide.