Individuals in Middletown NY and nearby communities often find themselves in need of the specific relief that can be afforded through filing a case under Chapter 13.  Chapter 13 is usually filed to save a home from foreclosure, to protect assets that a debtor would lose if a Chapter 7 liquidation case were filed, or when the client is not eligible, for a variety of reasons, to file for Chapter 7 liquidation.  Chapter 13 is a highly structured and Court-supervised repayment plan that can run from 3 to 5 years.

At Hayward, Parker & O’Leary, Esqs. experienced Chapter 13 bankruptcy lawyer Michael O’Leary will evaluate your circumstances via an in-person, free Initial Consultation.  When the client’s expectations/hopes are made clear, they will be examined against the financial realities that must be dealt with.  With the Chapter 13 bankruptcy lawyer and client working together a determination will be made whether Chapter 13 is the best option, and a course of action will be charted to obtain the desired result.

Relevant Considerations When Filing Chapter 13

Chapter 13 is a long-term (i.e., 3 to 5 years) monthly repayment plan, with the required monthly payment amount determined by the disposable income left over in your monthly budget. The client’s monthly take-home income MUST exceed their monthly cost of living expenses—there must be something left over at the end of the month to pay to the Chapter 13 Trustee.  Income from many sources besides wages can be considered in the budget, including pension benefits, Social Security benefits, child support, rental income, unemployment benefits and regular contributions from family members.

Business entities (i.e., corporations, LLC’s, etc.) are not eligible to file for Chapter 13 relief, nor are individuals whose debts exceed a certain dollar amount established by statute, currently set at $2,750,000.00.  This dollar amount is adjusted by the powers that be at each 3-year interval, ending on April 1^st.

Whether your monthly disposable income is sufficient to fund a Chapter 13 Plan is an intricate calculation based upon many factors, including the amount, and nature, of the creditor’s claims filed in your case.  Chapter 13 bankruptcy lawyer Michael O’Leary will go over this process and calculation with you and make necessary adjustments, when possible.  In addition, the client must be prepared to be on a very tight budget for the duration of the plan. A former Chapter 13 Trustee was known to comment that “Chapter 13 is not a savings plan!”.  A Chapter 13 debtor must be aware that the vagaries of life will keep coming at them, even if their monthly disposable income is essentially already pledged to your Chapter 13 Plan.

For Chapter 13 bankruptcy lawyer Michael O’Leary to recommend that a client file Chapter 13 their budget must be sufficient to manage the required monthly Plan payment AND they must be willing to tighten their belts and live on a strict budget for the length of the Plan.  If either component is missing the Chapter 13 filing may not succeed over the long term.

Benefits of Hiring a Local Chapter 13 Bankruptcy Lawyer

The very intricate issues involved in Chapter 13 cry out for considerable interaction between the client and attorney, which is more easily achieved by dealing with a local Chapter 13 bankruptcy lawyer.  The process of dealing with an attorney at a distant location can be very challenging, given either the travel time back and forth or, for electronic exchanges, the time involved in preparing and sending emails, waiting for the response and then responding to that, etc.  It is much more efficient for a lawyer and client to be located nearer to each other so they can actually communicate, face to face, and iron out troubling details in one sitting.  The accessibility of the local Chapter 13 bankruptcy lawyer is a critical component to the development and nurturing of an effective attorney-client relationship that is so necessary to the successful resolution of any legal matter, and most particularly a Chapter 13 bankruptcy case.

Calling 845-343-6227 to schedule a free consultation with experienced bankruptcy lawyer Michael O’Leary can be your first step toward achieving debt relief and financial recovery.