Helping people in financial distress in south Louisiana since 1985
• I’ve heard of people speak of Chapter 7 & Chapter 13. What are those?
United States bankruptcy laws provide for various types of bankruptcies. However, most individuals file under Chapter 7 or Chapter 13.
Under Chapter 7, the debtor gives up his non-exempt property (property that's paid for) to a trustee who then sells it and gives the money to the creditors. Your living necessities and household furnishings are usually exempt.
Under Chapter 13, the debtor is allowed to keep most assets, provided he agrees to pay his disposable income into a court-approved plan for a period of 36 to 60 months.
• How is Chapter 13 different from consumer credit counseling services?
Private consumer credit counseling cannot force a creditor to cooperate or reduce payments. Because Chapter 13 is a Federal law, the court can require a creditor to accept less. It is this power that allows the debtor to reduce his total monthly payments under his plan.
• Can the bank take what I have under Chapter 13?
No. You may keep what you have unless you choose to give it back to a creditor. Giving it back will affect the amount you pay under the plan.
• How much will I have to pay each month?
The amount you pay into the plan each month is determined by subtracting your monthly living expenses from your monthly income.
• How long must I pay this amount?
A Chapter 13 plan is for 36 months to 60 months. The length of your plan will depend on the amount you owe, the value of the assets securing the debts and the amount of your monthly payments.
• What happens if I lose my job?
You can ask the court for a temporary suspension of your payments or you can convert to a Chapter 7.
• Are all of my debts released under Chapter 7 or 13?
Most are, some are not. Tax debts are included in the Chapter 13 plan; student loan debts will generally still have a balance.
• Can my creditors continue to call me after I have filed bankruptcy?
No. Your creditors must stop trying to collect their debts once you have filed.
• What do I need to file?
In general, we'll need your gross income over the past 6 months AND your total income for the past 3 years. We'll also need a list of your creditors and what you owe them.
Feel free to call us at 1-888-2-FILE-13 if you have further questions.
The Law Office of Gregory R. Olivier DeKeyzer
301 Julia Street * New Iberia, LA * 70560
337-367-0214 * 1-888-234-5313
We are a debt relief agency, helping people file for relief
under the Bankruptcy Code. Licensed in Louisiana.