Chapter 13 Bankruptcy

Is Chapter 13 Bankruptcy Right for You ?

There are 3 main reasons that individuals with consumer debt and sole proprietors consider Chapter 13 bankruptcy:

1) curing a default in a mortgage or car loan;

2) repaying a tax deb;

3) repaying unsecured debt in whole or in part when a Chapter 7 bankruptcy is not possible or advisable if there is too much disposable income or exposed assets.

Chapter 13 is aimed at individuals and sole proprietors who have steady income and can repay some or all of their unsecured debt or cure mortgage and car loan defaults in a period of three to five years. 

What Does Chapter 13 Bankruptcy Protection Mean for You?

Chapter 13 bankruptcy protection is very similar to getting a consolidation loan that allows you to make one payment to cover all of your debt. All your unsecured debts, including personal loans, credit card debt, income tax debt, medical bills, and vehicle deficiencies can be included when filing for Chapter 13 bankruptcy. You can cure your mortgage and avoid sheriff sales and execution by the taxing authorities. You can take advantage of the automatic stay, which stops all collection activity when you file your bankruptcy petition. That means no more harassing phone calls, letters, lawsuits, or sales of real estate or other assets.

Chapter 13 BankruptcyChapter 13 BankruptcyChapter 13 BankruptcyChapter 13 Bankruptcy
Chapter 13 Bankruptcy

What Are the Steps in a Chapter 13 Bankruptcy?

All Chapters for voluntary bankruptcy, as opposed to the rarely filed involuntary bankruptcy, begin the same.  

1) A Petition is filed with the court.  However, Chapter 13 differs from Chapter 7 in that a Chapter 13 requires the filing of a Chapter 13 Plan. This serves as your porposal to resolve your debt as required by Chapter 13. Payments must be made to the trustee within 30 days of the Petition filing, which is ultimately subject to approval by the court.  

2) The next step is a Meeting of Creditors, which is theoretically a chance for your creditors to come and ask you questions, but they rarely appear.  Rather, the meeting is conducted by the trustee, known as a Standing Chapter 13 Trustee in Chapter 13 cases.  As in a Chapter 7, the trustee reviews the petition with you and your counsel, all while the proceedings are tape recorded and under oath.  The Chapter 13 trustee will then suggest any chnages that may be required to the forms, schedules, and Chapter 13 Plan.  

3) The final step is a Confirmation Hearing which doesn't necessarily require attendance by you and counsel.  Rather, if the trustee is satisfied that your Plan is feasible and comports with Chapter 13, the trustee will simply recommend confirmation, approval, of the Plan.  It is extremely likely that the court will then confirm the Plan if it has been recommended by the trustee.  So long as you are able to comply with the Plan throught the entire length of the case, typically five years, you will be entitled to a discharge of any debt remaining unpaid and any defaults will be deemed cured.           

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Testimonials

I have dealt with Matt for a few years for a couple of matters for myself and for my mother-in-law. Matt has always been a man of his word; anything he said he would do was done as expected. He provided timely and accurate advice when requested. Matt never pushed services that were not required and at certain times he recommended less costly services that would achieve the same results. I highly recommend him as very honest and ethical. He always disclosed fees in advance and there were never any "surprise" fees.— jimcar13
Mr Nahrgang was easy to work with, and did an excellent job with my case. Though my case turned out to be more complex than we had originally realized, he handled every complication promptly and competently.— eyedoc89
I was first recommended to Matthew Nahrgang by a friend. I was having serious financial issues at the time. I went to Matt and had a conversation which set my mind at ease. He is straight to the point, honest and tells you how it is. No frills kind of guy. He also is confident in his business and knows the law very well, which is what set me at ease. It was not near a big deal as I thought it to be. He does what he says he is going to do and does it in a timely manner. I have used Matt a few times now and I've recommend him to many of my friends and business acquaintances. I highly recommend Matthew Nahrgang!— my1leelee
In relation to my bankruptcy and in retrospect, I was thankful that I had discovered Mr. Nahrgang and had engaged him to respresent me in my case. I found him to be respectful, understanding, highly knowledgeable and trustworthy. I appreciate all that he did on my behalf and have recommended him to friends and family.— Orangefit09
Areas we serve
The Collegeville, Pennsylvania based law firm of Nahrgang & Associates, P.C. represents clients in the counties of Montgomery, Bucks, Delaware, Chester, Berks, Philadelphia, Lancaster, Northampton and Lehigh including the communities of Collegeville, Jenkintown, Doylestown, West Chester, Reading, Media, Allentown, Norristown, Phoenixville, Quakertown, Pottstown, Lansdale, Royersford, Plymouth Meeting, Exton, Conshohocken and King of Prussia, PA.
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Nahrgang & Associates, P.C
35 Evansburg Road, Suite 3 Collegeville, PA 19426
Phone: 610-422-3651
Toll Free: 888-773-6714
Fax: 610-489-3042