Chapter 13 bankruptcy allows individuals and couples to reorganize the way they are repaying the debt they have accumulated. Qualified debtors are able to keep their possessions (such as homes and cars) as long as they remain current on their established payment schedule.

Chapter 13 is often known as a “bill consolidation bankruptcy” because, upon filing, the debtor(s) submit proposed payment schedules that are paid by installments to a single Trustee rather than many collectors. To find out if Chapter 13 bankruptcy might be the right solution for your debt dilemma, contact Grand Law Firm and schedule a free consultation with our Chapter 13 bankruptcy lawyers in Baton Rouge.

Understanding Chapter 13 Bankruptcy in Baton Rouge

This type of bankruptcy typically lasts between 3 and 5 years. During that time, the debtor or debtors must stay current on established payments to the assigned trustee. The Chapter 13 trustee distributes these monthly payments to the debtor’s creditors as established by the filed schedules. It is imperative for people who file Chapter 13 to adhere to the payment plan and not incur further debt.

Some of the immediate benefits of filing for Chapter 13, include:

• Creditors must stop calling to collect and must direct all information regarding the case to your attorney
• There is an automatic stay placed on foreclosures
• There is an automatic stay placed on repossession of property and vehicles
• There is an automatic stay placed on all wage garnishments

The moment you file a bankruptcy case, you are on your way to being debt-free and on the path to rebuilding your credit score and finances.

Commonly Asked Questions