Chapter 13 Rapid City Bankruptcy Lawyer | Reorganization Attorneys in Rapid City
Chapter 13 Bankruptcy is referred to as a “reorganization” bankruptcy. This type of bankruptcy is similar to a debt consolidation plan and normally takes several years to complete before you receive a bankruptcy discharge (debt forgiveness). In a Rapid City Ch. 13 bankruptcy, you will make payments to the Chapter 13 Trustee who will then make payments to your creditors pursuant to a plan you proposed and had approved by the Rapid City Bankruptcy Court.
Your personal debts will mostly be made up of "secured" and "unsecured" debts. The bankruptcy code handles them differently. In a Pennington County Ch. 13 bankruptcy, you can choose to continue to make payments on "secured" debts for property that you want to keep.
Examples of typical Pennington County businesses where you might have entered into a "secured" loan agreement include:
Mortgages:
First Federal Savings Bank of South Dakota Harley-Davidson Dealers
Black Hills Harley-Davidson |
Car Loans:
State Farm Insurance Jewelry Stores:
Fair Dale Pawn & Gun |
|
When you file Chapter 13 bankruptcy in Rapid City, you have the option to "surrender" secured property and owe nothing on it. When you surrender property in a bankruptcy case, you will not incur the same tax liability that you might incur if you return property to a creditor outside of bankruptcy. |
There is no means test for chapter 13 like you have to pass to qualify for Ch. 7 bankruptcy. There will be a calculation of your 'disposable income' which will influence how much is paid to all of your creditors, including "unsecured" creditors. There is also a "liquidation test" required in order to qualify for a Chapter 13 bankruptcy. This basically requires that unsecured creditors receive more from the debtor in a Chapter 13 case than they would have in a Chapter 7 case. Your Rapid City Bankruptcy Lawyer will examine these calculations for you and provide you with advice about the chapter(s) for which you will qualify.
Examples of Rapid City area businesses where you pay by credit card or open a credit line and incur "unsecured" debts:
Shopping Malls
Uniquely Yours Mini Mall Cell Phones:
A T T Mobility |
Some of America's Favorite Stores:
Spirit Halloween Super Stores Restaurants:
Golden Fortune Restaurant |
|
It is possible that some of your purchases from these business might actually be secured debts instead of unsecured debts. Your Rapid City Chapter 13 Bankruptcy Lawyer will review your debts and help you identify what is secured and what is unsecured. |
Depending on your personal debt and financial circumstances, there are advantages to filing a chapter 13 bankruptcy in the South Dakota Bankruptcy Court. While both chapter 7 and chapter 13 bankruptcies allow you to reaffirm your secured debts and continue making payments, Ch. 13 also has the advantage of letting you catch up on past due payments by spreading them over several years. This can include late payments for your mortgage, car loans, and even taxes! Your Rapid City Bankruptcy Attorney will give you the information on bankruptcy so you understand the advantages of Ch. 13 bankruptcy.
South Dakota Mortgage and Foreclosure Lawyer
If you're behind on your mortgage payments, you have regular income, and want to keep your house, a chapter 13 bankruptcy might be the right answer. A chapter 13 bankruptcy will allow you to spread your past due mortgage payments over 3 to 5 years and consolidate some of your other bills as well.
Prior to bankruptcy, you might have difficulty getting your mortgage company or bank to discuss a loan modification or payment plan with you. As soon as you file bankruptcy, not only does your mortgage company or bank have to stop foreclosure proceedings, but they will be required to communicate with your Rapid City Ch. 13 Bankruptcy Law Firm to discuss options for resolving your mortgage delinquencies.
Information about mortgages and mortgage payments is available by visiting the FTC's website.
Remember, you may live in any of these neighborhoods in Rapid City, but mortgage trouble and foreclosures exist in all of them and shows no preference.
Rapid City Neighborhoods
Rapid Valley neighborhood |
|
Blackhawk neighborhood |
|
Many people avoid filing for bankruptcy because they are concerned about the stigma of going bankrupt. But filing bankruptcy can provide the financial help you need to get out of debt. Let a Rapid City Ch. 13 Bankruptcy Attorney show you to to deal with your financial problems and get debt relief. |
The Chapter 13 Plan
The main element of a Chapter 13 Bankruptcy is the Plan. An experienced Pennington County Bankruptcy Attorney will work with you to calculate all the debts that will be paid in the plan, plus the trustee's fee, attorney's fees, and applicable interest. All of this information is included in your proposed Chapter 13 Plan and submitted to the Bankruptcy Court for approval.
A confirmation hearing will be held. The trustee and/or some of the creditors may object to the plan. Most of these negotiations will take place prior to the confirmation hearing; your Rapid City Bankruptcy Lawyer will negotiate on your behalf with the Trustee and the creditors to formulate a plan that will not be objected to by them. You will likely have to modify your original proposed plan.
The bankruptcy judge will have the final say as to whether or not your proposed plan is confirmed, even if there are still objections. A confirmed plan will bind the debtor and each creditor to payment plan set forth in the plan. Chapter 13 plans usually run from 36 to 60 months. At such time as a debtor has made all payments required under the plan and fulfilled all other obligations set forth in the plan, the court will grant a discharge to the debtor of all debts (as provided for in the plan).
There are many circumstances that can arise during the three to five years of a Chapter 13 plan: job loss, job promotion, marriage, divorce, new children, grown children going to college, etc. Chapter 13 plans can be modified during the course of the plan. Your Rapid City Bankruptcy Lawyer will advise and assist you as these life situations occur.
Rapid City Debt Relief Lawyers serve the Pennington County and Surrounding Areas
Serving clients throughout Western South Dakota, including Ashland Heights, Belle Fourche, Blackhawk, Box Elder, Buffalo, Central City, Custer, Deadwood, Dupree, Ellsworth AFB, Fairburn, Faulkton, Gannvalley, Hermosa, Highmore, Hill City, Kadoka, Kennebec, Lead, Murdo, New Underwood, North Spearfish, Oreville, Pierre, Rapid City, Redfield, Schaeferville, Spearfish, Sturgis, Summerset, Wall, and other communities in Pennington County.