Broomfield & Thornton Chapter 13 Bankruptcy Atorney

Consumer bankruptcy lawyer with more than 30 years of experience

Sometimes, those in dire financial situations have jobs or other income and can still pay a portion of their debts. When this is the case, filing for Chapter 13 bankruptcy might be the best way out of debt.

Broomfield bankruptcy Chapter 13 attorney Lois Tabberson Gray guides financially struggling individuals and small business owners in their pursuit of financial relief. Attorney Gray is also a highly qualified Broomfield & Thornton Chapter 7 attorney.

Chapter 13 bankruptcy was designed for people with regular incomes that are insufficient to cover their debts. Under Chapter 13, a person’s debt is consolidated and the debtor pays back a percentage of the debt over three to five years at low or no interest. The repayment plan is overseen by a court-appointed trustee.

What you need to understand about Chapter 13 bankruptcy

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, many cases that once were eligible for Chapter 7 relief now must be filed as Chapter 13 bankruptcies.

Chapter 13 bankruptcies can be useful if a debtor faces foreclosure, repossession of a vehicle or wage garnishment. It also protects debtors from persistent calls from creditors.

When you file for Chapter 13, we include a proposed plan to pay all priority claims against you, including taxes, in full. Once the bankruptcy court appoints a trustee, who approves your plan, your creditors receive and have the right to accept or reject the plan. If it is approved, you make monthly payments to the bankruptcy trustee, who then distributes the funds to your creditors according to your plan.

When filing for Chapter 13 makes sense

If you need some breathing room to pay your debts, Chapter 13 could be your best bankruptcy option, especially if you:

Are behind on your mortgage payments
Owe money to the IRS
Do not qualify for Chapter 7
Have previously filed for Chapter 7
Need relief from collection proceedings
Have debts with co-signers
Can pay your debts within three to five years

While unpaid taxes cannot be discharged, a Chapter 13 bankruptcy may save you thousands of dollars in interest and penalties owed on those taxes. If you have large tax delinquencies, these savings may strongly favor a Chapter 13 filing.

At the Law Office of Lois Tabberson Gray, P.C., we have seen bankruptcy from all angles in our more than 35 years of bankruptcy law practice. We afford clients a unique perspective and knowledge of the process. At each stage, we ensure clients understand what is happening and the strategy for getting through it. We aim to eliminate the fear and confusion surrounding bankruptcy.

If you’re considering bankruptcy, it is vital that you speak to an attorney who knows your options under the law. The key to an optimal outcome is the caliber of your consumer bankruptcy lawyer. We can make the process as straightforward as possible.