Chapter 13 Bankruptcy

Chapter 13 of the United States Bankruptcy Code (also known as “adjustment of debts,” or “bill consolidation”) allows you to pay back your creditors all or a portion of what you owe them over three to five years via monthly payments. At McBride & Collier, our attorneys assist clients throughout the course of their Chapter 13 bankruptcy proceedings. As with Chapter 7, Chapter 13 bankruptcy proceedings are handled through the United States Bankruptcy Court.  Your attorney will prepare a "Plan" of reorganization, which will propose how your debt will be repaid.  This Plan will then be approved by the Bankruptcy Court. The court appoints a Trustee or Administrator who will handle your monthly payments and act as a "go between" between you and your creditors. In order for your plan to be successful you must make the plan payments and attend the required meetings.

Our lawyers may advise clients to file for Chapter 13 debt adjustment when:

• You have a strong desire and ability to pay all or a portion of your debts. Chapter 13 cures arrears on real estate, stops foreclosures and may save your home.
• You want to protect non-exempt assets.
• You owe taxes or student loans that do not meet the requirements for discharge in a Chapter 7.
• You want to protect a consumer co-signer.

The first step in getting relief from your creditors and getting your Chapter 13 Plan started begins with a free initial consultation with one of our attorneys at any of McBride & Collier’s three locations in Alexandria, Shreveport or Monroe. We will assess your situation, fill out paperwork, and answer any questions you may have about filing for bankruptcy.

Your Chapter 13 Plan will tell the Trustee and the Court which of your creditors are being paid by the Plan and how they are going to be paid. Your Plan may provide that you are to continue to pay some creditors directly outside of your Plan (for example, house notes and car notes).  Your Plan will state the term or number of monthly payments, which could be three, four, or five years. In order for your Plan to be successful, you must make all Plan payments on time. Generally, your first payment is due thirty (30) days after our lawyers file your Chapter 13 papers with the Court. Plan payments may be made by payroll deduction, or directly by you.

About four weeks after we file your papers with the Court, we will have a meeting with the Chapter13 Trustee so that he can review your Plan and budget with you. The technical term for this meeting is the "Section 341(a) Meeting" or "Meeting of Creditors." Your creditors are allowed the opportunity to attend and ask you simple questions about your debts; however, creditors usually do not appear at this meeting. You must attend this meeting, and your lawyer will accompany you. If you and your spouse are filing a case together, you both must attend this meeting.

Approximately three weeks after we meet with the Trustee, we will have a second meeting with the Judge for him to approve your Plan. This meeting is called the "Confirmation Hearing." Assuming your Plan is approved, you will continue to make the Plan payments, which will protect you from your creditors, a well as stop pending foreclosures or repossession.

McBride & Collier represents clients in Alexandria, Shreveport, Monroe, Bossier City, Pineville, Mansfield, Ruston, and Natchitoches, and throughout the state of Louisiana, successfully pay off their debts through Chapter 13 bankruptcy. For more information about bankruptcy law, visit our Bankruptcy Information Center, or contact our office today to schedule a free initial consultation.