L. PHILLIP DEW
Attorney at Law
7660 S. 800 W. (Holden St.)
Midvale UT 84047
Telephone 801-566-3322
Fax Number 801-566-2422
E-mail: dewatt@xmission.com
Web Site: www.dewlaw.com
What is a Chapter 13 Debt Consolidation plan? "Chapter 13" is the part of the Bankruptcy Code that allows you to consolidate your financial affairs, under the protection of the Court. It is a debt consolidation plan that gives you a breathing space from your creditors, usually with much lower payments. You make monthly payments to the Court, who pays your creditors. In the meantime, creditors can't bother you. They get paid, but they wait their turn. In many cases, interest can be lowered or eliminated.
Will a 13 stop the IRS, home foreclosures, car repossessions, garnishments, and judgments? Yes.
Can I file a 13 even if I have filed a Chapter 7 in the last six years? Yes.
How does a Chapter 13 differ from a Chapter 7? In a 13, you usually get to keep possessions that you might lose in a Chapter 7. In a 13, you can include debts that can't be included in a 7, such as back taxes, back child support, school loans, overdue mortgage and car payments, and most other types of debts. You can usually stretch out your payments for as long as five & 1/2 years. Depending on your income and assets, if you are too broke to repay everything, the court often allows you to pay much less than you owe. They usually allow you to lower interest rates or pay no interest at all.
When is a 13 preferable to a Chapter 7? A 13 is preferable if (1) you want to repay all or most of your creditors, but just need time to do it; (2) you have possessions that would be taken from you in a 7; (3) you have debts that can't be discharged in a Chapter 7, such as child support, school loans or new taxes; or (4) you have a home foreclosure, car repossession or IRS garnishment coming up that you need to have stopped.
If you have questions about your specific situation, contact us anytime. We are happy to answer your questions and schedule e FREE CONSULTATION to meet with you. 801-566-3322
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