At Foley Freeman, PLLC, our Boise Chapter 13 bankruptcy attorney is standing by, ready to help you find the best solution for your needs. With extensive experience helping clients resolve serious financial challenges, we know bankruptcy law in Idaho. Contact us today for a completely confidential consultation with a top-rated Boise Chapter 13 bankruptcy attorney.
Understanding Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a type of personal bankruptcy. It is the primary alternative to a Chapter 7 liquidation bankruptcy. You may hear Chapter 13 referred to as the wage earner’s plan. It is designed for people with a steady income who want to reorganize their debt. Chapter 13 bankruptcy lets debtors keep their property while catching up on missed mortgage, car, or tax payments. A successful Chapter 13 plan requires filing a repayment plan lasting three to five years, subject to approval by the bankruptcy court.
Chapter 13 bankruptcy provides a structured way to handle debt through the bankruptcy court. Unlike Chapter 7 bankruptcy, which involves liquidating assets, Chapter 13 allows you to keep your property while making monthly payments. The bankruptcy process follows federal law and the United States Bankruptcy Code, giving debtors a chance to reorganize their finances in an orderly manner.
Note: The strict means tests for Chapter 7 bankruptcy do not apply to Chapter 13 bankruptcy. In other words, people who are not eligible for Chapter 7 in Boise can still file for Chapter 13.
Why Trust Our Boise Chapter 13 Bankruptcy Lawyer
Chapter 13 bankruptcy allows people to reorganize their debts and roll them into an affordable monthly payment. At Foley Freeman, PLLC, we have extensive experience with personal bankruptcy cases in Idaho. We encourage you to learn more about the firm and reach out to us directly with specific questions. Among other things, our Boise Chapter 13 bankruptcy lawyer will:
- Hear your story and answer questions about your case;
- Gather, organize, and prepare financial documents and records;
- Take care of all of the Chapter 13 bankruptcy paperwork; and
- Craft a personalized strategy designed to get you the best outcome.
Our law firm focuses on providing personalized attention to each case. Bankruptcy attorneys at our Boise office understand Idaho law and how it applies to your situation. We work as problem solvers, finding solutions that fit your specific financial circumstances and helping you move toward a better financial future.
How Chapter 13 Bankruptcy Works
Filing bankruptcy under Chapter 13 starts with creating a repayment plan that shows how you will pay creditors over three to five years. Your bankruptcy attorney submits this plan to the bankruptcy court for approval. The bankruptcy code requires the plan to show you can make regular payments while covering priority debts like taxes and child support.
The bankruptcy process begins with an initial consultation where your attorney reviews your finances and determines if Chapter 13 is the best path forward. During this meeting, your Boise bankruptcy attorney will answer questions about how bankruptcy law applies to your case. Many people find that Chapter 13 bankruptcy offers the structure they need to regain control.
Once you file your Chapter 13 petition, the bankruptcy court reviews your plan and schedules a meeting with creditors. A trustee oversees your case and collects your monthly payments, then distributes them to creditors according to the approved plan. This system protects you from harassing phone calls and collection actions while you work through your debt.
Who Benefits from Chapter 13
Chapter 13 bankruptcy works well for people with steady income who want to keep their home or car. If you’re facing foreclosure on your primary residence, Chapter 13 can stop the sale and let you catch up on missed payments. The repayment plan spreads your arrears over three to five years, making them more manageable.
People with non-exempt assets they don’t want to lose often choose Chapter 13 over Chapter 7 bankruptcy. Chapter 7 requires selling non-exempt assets to pay creditors, while Chapter 13 lets you keep your property as long as you stick to your payment plan. Your bankruptcy lawyer can explain which assets are protected under certain exemptions in Idaho law.
Business owners sometimes use Chapter 13 to handle personal debts while keeping their company running. The process allows you to reorganize debt without affecting your business operations. An experienced bankruptcy attorney can structure a plan that addresses both personal and business concerns.
Chapter 13 vs Chapter 7 Bankruptcy
Chapter 7 bankruptcy eliminates most unsecured debts through liquidation, while Chapter 13 focuses on debt reorganization. Chapter 7 typically takes three to four months to complete, but requires selling non-exempt assets. Chapter 13 takes longer but protects your property through the repayment plan.
The bankruptcy process for Chapter 7 moves faster but has stricter income requirements. If you earn too much to qualify for Chapter 7, Chapter 13 bankruptcy may be your only option. Your Boise bankruptcy lawyer can review your income and debt levels to determine which chapter suits your situation.
Both chapters are part of the United States Bankruptcy Code and require filing for bankruptcy through federal courts. Each provides protection from creditors through the automatic stay, which stops collection actions immediately. Your experienced bankruptcy lawyer will explain how each option affects your financial future and help you choose the right path forward.
The Role of the Bankruptcy Court
The bankruptcy court in Ada County oversees all Chapter 13 cases filed in the Boise, ID, area. Judges review repayment plans to make sure they follow the bankruptcy code and treat creditors fairly. The court also handles disputes between debtors and creditors during the process.
Federal courts handle bankruptcy cases under federal law, which means the same rules apply throughout Idaho and the rest of the country. However, Idaho law affects certain exemptions and property protections available to debtors. Your bankruptcy attorney understands both federal law and state requirements.
The bankruptcy court requires honesty and full disclosure about your finances. You must list all debts, assets, income, and expenses when you file. Missing information or false statements can result in case dismissal or denial of discharge. Working with an experienced bankruptcy attorney helps ensure your paperwork is complete and accurate.
Creating Your Repayment Plan
Your repayment plan must show how you will handle priority debts, secured debts, and unsecured debts over three to five years. Priority debts include child support, recent taxes, and certain other obligations that must be paid in full. Secured debts like mortgages and car loans require current payments plus any arrears.
The bankruptcy code requires your plan to pay unsecured creditors at least as much as they would receive in a Chapter 7 bankruptcy. This means calculating the value of your non-exempt assets and ensuring creditors receive at least that amount through your plan. Your Boise bankruptcy attorney handles these complex calculations.
Serving clients in the surrounding area, our attorneys create plans that fit your budget while satisfying bankruptcy court requirements. We look at your income, necessary expenses, and debt levels to develop a realistic payment amount. The goal is to create a plan you can actually complete over three to five years.
Life During Chapter 13
Living under a Chapter 13 plan means making regular monthly payments to the trustee for three to five years. You must also keep current on ongoing obligations like your mortgage, car payment, and child support. Missing payments can jeopardize your case and lead to dismissal.
The bankruptcy process requires you to get court permission before taking on new debt or making major financial decisions. You cannot file for additional credit cards or loans without trustee approval. These restrictions help ensure you stay focused on completing your plan and reaching a fresh start.
Many clients find that Chapter 13 provides structure and relief from creditor pressure. The automatic stay stops harassing phone calls, wage garnishments, and collection lawsuits. While making payments may be challenging, most debtors appreciate the protection and stability Chapter 13 provides.
When Medical Bills Overwhelm You
Medical bills create unexpected debt for many families in Idaho. Even with insurance, serious illness or injury can result in overwhelming costs. Chapter 13 bankruptcy lets you include medical bills in your repayment plan, spreading them over several years and often paying less than the full amount.
The bankruptcy process treats medical bills as unsecured debt, meaning they receive lower priority than secured debts and child support. In many Chapter 13 cases, medical bills receive only a percentage of what’s owed, based on your disposable income and plan length. This provides significant relief for families struggling with healthcare costs.
Our bankruptcy lawyers work with clients who face medical bills combined with other debts. We develop plans that address all your obligations while protecting your primary residence and other important assets. Filing for bankruptcy may be the best path when medical bills threaten your financial stability.
Protecting Your Home from Foreclosure
Chapter 13 bankruptcy offers powerful tools to stop foreclosure and save your home. When you file, the automatic stay immediately halts foreclosure proceedings under federal law. Your repayment plan then includes mortgage arrears, letting you catch up over three to five years while making current payments.
Facing foreclosure creates enormous stress, but Chapter 13 provides a realistic solution for homeowners with steady income. The bankruptcy court requires lenders to accept your plan if it meets bankruptcy code requirements and you can afford the payments. This gives you time to recover financially while keeping your primary residence.
Bankruptcy attorneys at our firm have helped many clients save their homes through Chapter 13. We negotiate with lenders, prepare the necessary paperwork, and represent you at bankruptcy court hearings. Our goal is to help you keep your home and achieve a fresh financial start.
Dealing with Wage Garnishment
Wage garnishments take money directly from your paycheck before you receive it, making it hard to cover basic expenses. Filing bankruptcy immediately stops wage garnishments under the automatic stay. Chapter 13 then includes the underlying debt in your repayment plan, letting you address it through manageable monthly payments.
Creditors use wage garnishment to collect on judgments for unsecured debts, back taxes, and child support. While Chapter 13 bankruptcy can stop most wage garnishments, child support garnishment continues because these obligations receive priority treatment. Your bankruptcy lawyer can explain which garnishments the automatic stay affects.
Many clients seek relief from wage garnishments that leave them unable to pay rent or buy groceries. The bankruptcy process provides immediate relief and a long-term solution. Our experienced bankruptcy lawyers act quickly to stop garnishments and protect your income while you work through your debt problems.
Working with Experienced Bankruptcy Lawyers
Choosing the right bankruptcy attorney makes a significant difference in your case outcome. Experienced bankruptcy lawyers understand the bankruptcy code, local bankruptcy court procedures, and how to negotiate with creditors. They bring legal knowledge and practical experience to help you through each step of the process.
Our law firm provides legal services focused on bankruptcy law and debt relief. We have years of experience helping clients in Boise, ID and the surrounding area file bankruptcy and complete their plans. Our attorneys stay current on changes to federal law and Idaho law affecting bankruptcy cases.
Serving clients throughout Ada County, our small law firm offers personalized attention that larger firms cannot match. We take time to understand your situation, answer questions, and develop strategies tailored to your needs. When you work with our team, you get direct access to experienced bankruptcy attorneys who care about your outcome.
What Happens After Plan Completion
Completing your Chapter 13 repayment plan results in the discharge of remaining unsecured debts included in your bankruptcy. This means creditors cannot try to collect these debts after you finish your plan. You receive a discharge order from the bankruptcy court confirming your obligations are satisfied.
Successfully completing Chapter 13 provides a fresh start and a welcome fresh start to rebuild your finances. While bankruptcy remains on your credit report, completing your plan shows creditors you handled your obligations responsibly. Many clients find they can qualify for new credit within a few years of discharge.
Your financial future improves dramatically after completing Chapter 13. Without overwhelming debt payments, you can save money, build emergency funds, and plan for long-term goals. Our bankruptcy attorneys provide guidance on rebuilding credit and maintaining financial health after your case ends.
Why Choose Our Boise Office
Our Boise office focuses exclusively on helping clients through financial difficulties. We understand the challenges families and individuals face in Idaho and throughout the surrounding area. As a small law firm, we provide the personal attention and dedication that make a difference in bankruptcy cases.
Bankruptcy attorneys at Foley Freeman, PLLC have helped hundreds of clients achieve a fresh start through Chapter 13. We know the local bankruptcy court procedures and work regularly with trustees and judges in Ada County. This experience helps us guide you through the process efficiently and effectively.
Serving clients across Boise, ID, and nearby communities, our law firm offers free consultation appointments to discuss your situation. We review your debt, income, and assets to determine if Chapter 13 bankruptcy is the right solution. Our team is here to answer questions, explain your options, and help you choose the best path forward.
Chapter 13 Bankruptcy: Frequently Asked Questions (FAQs)
How is my monthly payment calculated under Chapter 13?
The specific circumstances always matter. Payments are based on disposable income, secured and priority debt amounts, and the length of your plan (usually between three and five years). Our Boise Chapter 13 bankruptcy lawyer can help you negotiate the best payment.
Can I stop foreclosure through Chapter 13 bankruptcy in Idaho?
Yes. Or at least you can for the time being. Filing immediately triggers the automatic stay under federal law, halting foreclosure proceedings. You can then include arrears in your repayment plan to catch up over time. Chapter 13 bankruptcy may be the best option for homeowners.
What happens if I miss a Chapter 13 payment?
Missed payments can cause plan default and even an outright dismissal. With that being said, debtors can request a plan modification to try to get back on track.
Can I file Chapter 13 if I previously filed Chapter 7?
Yes, but timing matters. You must wait at least four years from your Chapter 7 filing date before you can receive a Chapter 13 discharge. However, you can file Chapter 13 sooner if you only need the automatic stay protection without seeking discharge of debts.
What debts cannot be eliminated in Chapter 13?
Child support, alimony, recent taxes, student loans, and debts from fraud typically cannot be discharged. These obligations must be paid through your plan or remain after discharge. Your bankruptcy attorney can identify which debts must be paid in full.
Do I need to attend court hearings?
You must attend the meeting of creditors, also called the 341 meeting. This is not a formal court hearing but a meeting with the trustee where you answer questions about your finances under oath. Your attorney attends with you and helps prepare you for questions.
Contact Our Boise Chapter 13 Bankruptcy Attorney Today
At Foley Freeman, PLLC, our Boise Chapter 13 bankruptcy lawyer has the knowledge and experience you can trust. If you have any questions about Chapter 13 bankruptcy, we are here to help. Contact us right away for a completely confidential, no obligation consultation. We provide Chapter 13 bankruptcy representation in Boise, Ada County, and all across the region.
Our experienced bankruptcy attorney team understands that filing for bankruptcy is a difficult decision. We offer a free consultation to review your situation and explain how Chapter 13 can help. Whether you’re dealing with medical bills, facing foreclosure, or struggling with wage garnishment, we have solutions. Call our Boise office today to speak with bankruptcy lawyers who truly care about your financial future.