Chapter 13 Bankruptcy

Relief From Creditors — Paying Debts Over Time

Stop Foreclosure on Your Home • Stop the Harassment

If the bank is threatening to foreclose on your house or repossess your car, or you can only make the minimum payments on your credit card bills, Chapter 13 bankruptcy may be right for you.

Colorado Springs Chapter 13 Bankruptcy Lawyer
Call John Turner for a Free Consultation at 719-632-2022

Chapter 13: Room to Breathe and a Plan to Catch Up

Freeing yourself from the burden of debt may seem like an impossible, unending process, but real relief is available through Chapter 13 bankruptcy ("reorganization of debts"). Individuals or small businesses get:

• Immediate relief from creditors
• An immediate stop to legal actions
• An opportunity to develop a plan to repay debts

You make set monthly payments to a bankruptcy trustee based on the court's determination of what you can afford to pay. The law recognizes that most Chapter 13 filers cannot pay back everything they owe; after you make the scheduled payments for 36 to 60 months, the bankruptcy court typically cancels the remaining debt. Chapter 13 also allows for a "super discharge" of more debts than are allowed under Chapter 7.

Save Your House
Perhaps the most common and maybe most important use of Chapter 13 is to protect your home from foreclosure. Once foreclose proceedings are initiated, you generally have a short amount of time to come up with the cash to pay off your debt. If you cannot pay the arrears, the mortgage holder may take your home and you will lose any remaining equity in the property.

Foreclosure actions stop the minute you file for Chapter 13 protection. It also extends the period of time you have to catch up with the payments. Having an extra year, or an extra five years, may mean all the difference when you are trying to keep your house. Chapter 13 also halts repossession of your car or other secured loan assets.

Get Immediate Protection from All Collection Activity
If you are in debt and have been for a while, you know what it is like to be hounded by creditors. They send intimidating notices by mail, phone your home at all hours, and maybe harass your family members or employer. From the moment you declare a Chapter 13 bankruptcy, you are granted an “automatic stay,” legally protecting you from all collection efforts. Foreclosure, repossession, and litigation are halted immediately. Creditors who persist in harassing you can be referred to your lawyer.

Do You "Flunk" The Means Test?
Perhaps you know people who had all their debts wiped out through Chapter 7 bankruptcy. If you earn more than the median income in Colorado, you may be required to file for Chapter 13 repayment under the bankruptcy means test established by Congress in 2005. However, you should consult an attorney rather than assuming that you earn too much. I have helped many "borderline" clients qualify for Chapter 7.

Will I Lose Any Assets in Chapter 13?

You will normally not lose anything. You retain all assets, unless you fail to make payments under the Chapter 13 repayment plan approved by the court.

Make Your Debt (and Your Life) More Manageable

Call my Colorado Springs office today at 719-632-2022 to discuss Chapter 13 bankruptcy in a free consultation. My attorney's fees can be addressed as part of your repayment plan. I have practiced exclusively in bankruptcy law since 1999, handling consumer and small business bankruptcy for clients of El Paso County, the surrounding counties, and nearby military installations.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.