What is Chapter 13 Bankruptcy
Hello my name is Jeff Kelly and I'd like to talk to you about chapter 13 what is it how can it help you chapter 13 is basically a consolidation of all your debts many people like to refer to chapter 13 as the catch your breath provision of the bank recode it's basically designed for somebody who's maybe they've been out of work for a while now they're working again they've got money to pay their creditors back they just can't do it all tomorrow chap 13 allows you to step back catch your breath and get caught up with your debts so let me give you an example somebody who's facing foreclosure let's say they've been unemployed there are six months behind now the creditor wants to take their house well chapter 13 allows you to stop the foreclosure and we can take those six months that you're behind on and we can put those into a chapter 13 plan we can stop before closure and save the house same thing with a car let's say you are behind on your car payments and creditor is threatened to repossess that car tomorrow you've got money to pay you just can't make up all those payments by tomorrow we can file a chapter 13 and we can stop that car repossession now many people don't know this but even if your car has been repossessed we might be able to get it back if your creditor is still in possession of that car and we file a case they're going to have to give your car back despite what they say now if the creditor has sent you what's called the 10-day letter and the georgia law in other words they've given you 10 days notice that they're going to sell the car and then pursue you for the deficiency once that car sold it's gone we would not be able to get it back then I want to talk to you a little bit about the myths about chapter 13 a lot of people think that you know to chapter 13 you're going have to pay back every single debt you have that is not correct any debt that we can wipe out in a chapter 7 we can wipe out in a chapter 13 but usually in Chapter teen there's some debt that we are trying to take care of whether it's a house or a car or sometimes people might owe some back taxes to the IRS chat obtained is a great tool for stopping garnishments foreclosures and repossessions another benefit to a chapter 13 is you know if you do have a car dad and if if it's been more than nine hundred and ten days since you have purchased that car in the chapter teen we can pay back the value of the car not what's owed so it's a great tool for somebody who's really upside down on their on their car note and we can cram it down and pay back just what the car is worth the other thing is interest rates in Georgia you know we commonly see interest rates when these buy here pay here of thirty five forty percent and in a chapter 13 right now it's generally about somewhere between four to five percent is what people pay back in a chapter 13 on the interest on the car so you can save a lot of money on your car payments by filing a chapter 13 now another myth about chapter 13 is people will think well if I flunk the median income test that means I can't file at all now the median income test is something that's designed by Congress to push people who make a lot of money people who make more money than an average family of their size out of chapter 7 and into a chapter 13 and some people will do these you know these online deals where they'll go to some website and fill out the median income worksheet and they get to the end of it and they see this number they think oh my gosh there's no way I can afford to pay this amount of money well don't put all your faith and in those online tests you need to meet with a bankruptcy attorney and have them look at your actual situation and sometimes even when you really do have a high number and there's no way around it well if you're paying back your debts at a hundred sentence on a dollar in a chapter 13 then in that situation the median income test doesn't matter because all the debts are being paid so sometimes I'll have a high income client come in and they'll say hey you know I do this online test and it says my payment is going to be sky-high I'm not going to be able to live I can't afford that but then when we actually look at their credit card debt it's not that high and we can come up with a reasonable payment so again you know if you're considering bankruptcy you need to meet with a bankruptcy attorney because there's a lot of myths out there a lot of times people make assumptions that are not correct and you know sometimes people will say to themselves well I'm going to file chapter 13 a hundred percent plan and pay on my desk back at one hundred percent on the dollar why do I we want to consider chapter 13 well a couple things than that number one if you can avoid it avoid it but if you're in a situation where you've got compound interest that's just piling up super high you know credit card interest rates typically run from twenty-five thirty percent per year in a chapter 13 one hundred percent plan you don't pay any interest on your unsecured debt 0 so let's say someone's got you know thirty thousand dollars of credit card debt well in a hundred sent chapter 13 plan they're going to save about ten thousand dollars a year just interest in late fees alone so if you are considering bankruptcy please give me a call at 18 @ 8 a 3 2 a 2 49 our main office in Rome the phone number is 706 to 9500 30 I've got over 200 articles about bankruptcy on my website at wwlp.com bankruptcy to iPhone you can go to ww kelly bankruptcy calm thank you very much.
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"Jeff and his team do great work. They are fast and easy to work with. I would suggest working with them if you need to file for bankruptcy. Thanks Kelly Law Group!
"The staff was great helpful always there to answer our questions courteous would highly recommend Mr Kelley and his office staff Great Job. Thanks. Mary and Philip Abrams."
"They really helped me to feel comfortable and explained everything in detail and made sure I understood the process from start to finish. I recommend them highly. Thank you guys."
"Mr Kelly was very professional and charming. He explained everything, took time for me to decide the right course to take in my situation. He is also funny I would recommend him to anyone looking for an honest attorney who has a heart."
"Extremely professional. Helpful and knowledgeable every step of the way. Make you comfortable from the get go and never make you feel like they are judging you. Each and every person I talked to was so nice."
"I would love to just tell you THANK YOU!! Without your help my family would have been destitute. Now that my case has been completed successfully, it is the biggest RELIEF to not have to wonder how to make ends meet."