Working With a Chapter 13 Bankruptcy Lawyer in Madison

When it comes time to organize a repayment plan during a Chapter 13 bankruptcy, you might wonder if it is something you can set up on your own. You are strongly advised to work with legal counsel, given the complexity of the Bankruptcy Code and the impact it will have on your life. Call us to learn more about working with a Chapter 13 bankruptcy lawyer in Madison.

How Does an Attorney Help the Bankruptcy Process?

A Chapter 13 bankruptcy is generally too complex for a pro se debtor to navigate without legal counsel, and the chances of somebody getting a discharge without help from an attorney is probably less than 5%. Even when they do, it is generally not in their best interest to try it on their own. They would have to be familiar with the Bankruptcy Code, and with what they can and cannot do in implementing a bankruptcy plan. They would need to know:

• What is needed for a court to confirm their plan?
• What statutory provisions do they need to comply with?
• How are their payments are made?
• How is a plan proposed?
• Which creditors need to be paid, and which may not need to be paid?
• What they can do with secured creditors, as far as modifying the terms of getting paid back?
• Who needs to get paid interest and who does not?

There are so many factors that it is almost impossible for someone who does not have experience in bankruptcy to navigate the process. If they have a good Madison attorney who understands Chapter 13 of the Bankruptcy Code and has experience navigating people through the process, they will always benefit from that and get their discharge.

Determining the Length of a Repayment Plan

The Bankruptcy Code utilizes a Means Test, which includes adding up your household income, such as wages, part-time jobs, 1099 wages, contributions from family members, Social Security benefits, pensions, etc.—and you get a monthly average of the household income.

You then multiply that monthly average by 12 to come up with what the Bankruptcy Code calls your current income. Then it looks at that current income, and matches it up with the median income in New Jersey for your household size.

If your current income falls below the median income, then you only must propose a 36-month repayment plan – though you can propose up to 60 months depending on your budget. If it is above median income, then the repayment plan must be 60 months.

Are There Any Exceptions?

Special circumstances for the repayment timeline would only be considered if the client says they do not want to keep the property anymore, and will instead sell it and use the proceeds to pay creditors. In that case, they can work with a Madison lawyer to propose making a minimal payment to the trustee until the house sells, at which point they will pay off all creditors. If that takes six to twelve months to get the sale consummated, then the plan would be over at that point in time.

Call Our Madison Office and Find an Attorney to Work With You on Your Chapter 13 Bankruptcy Plan

Even if a debtor in Madison, NJ does look for an attorney, they should find someone with a lot of experience in Chapter 13 or with bankruptcy in general. We have seen other attorneys in court making highly questionable choices for their client, all because they want to take a quick fee and leave. Gillman Capone Law is made up of professionals with your best interests in mind.

The benefits you get from an experienced bankruptcy attorney is that we know the Bankruptcy Code, we know what you can and cannot get away with, and we can put together creative plans that will work for your situation and that comply with the Code, thereby allowing the court to confirm the plan. Reach out to us today for a free case evaluation.