Laurie A. Knight, Attorney At Law Classic Solutions | Life-Long Results

Chapter 13 Bankruptcy Attorney in Chesterfield

Wage Earner’s Plans in St. Louis County

A Chapter 13 bankruptcy is called a wage earner’s plan. Debtors with a regular income develop a plan to repay all or part of their debts.

The debtor files a proposed repayment plan to make installments to his/her creditors over 36 to 60 months. The plan length depends on the median income for the debtor’s household. A plan cannot exceed 60 months. During the length of the plan, creditors cannot start or continue collection efforts.

If you are facing mounting debt and feel overwhelmed, find peace of mind by filing for Chapter 13 bankruptcy. With a wage earner’s plan, you will be able to make fair and reasonable payments toward your debts with a timeline that works for you. Chesterfield bankruptcy attorney Laurie A. Knight can put her extensive bankruptcy experience to work for you.

To see if bankruptcy is the right option for you, contact Laurie A. Knight, Attorney at Law, LLC at (636) 200-5533 and schedule a confidential consultation.

Why Choose Chapter 13

One reason many debtors choose to file a Chapter 13 bankruptcy is that it offers the debtor an opportunity to save his/her home from foreclosure. Filing for bankruptcy stops the foreclosure. Under the debtor’s plan, the delinquent mortgage payments can be cured over time. However, the debtor must pay the regular mortgage payments each month during the bankruptcy case.

When filing for Chapter 13 bankruptcy, the debtor submits his or her proposed repayment plan to the Court. The Court must approve it, and the plan must provide for payments to the trustee on a regular monthly basis. The Chapter 13 panel trustee distributes the funds to the creditors according to the terms of the plan. Failure to make the required plan payments is cause for dismissal of the debtor’s case.

Creditors in Chapter 13 Cases

In order to receive payments from the trustee, creditors must file with the court a proof of claim. A proof of claim describes the type of claim a creditor has.

The three types of claims are:

  • Priority claims: These are granted special status by the Bankruptcy Code and include such debts as taxes.
  • Secured claims: Those that give the creditor the right to foreclose or repossess a piece a property if the debtor does not pay the debt. An example is a car loan.
  • Unsecured claims: The kind that creditors have no special rights to collect against a piece of property owned by the debtor. An example is a credit card debt.

The plan must deal with all types of debt. For a priority claim, the plan must pay the entire debt unless the priority creditor agrees to a different treatment of the debt. For any collateral that is securing a claim, the plan must state if the collateral is being surrendered. If the debtor wants to keep the property, the plan must provide that the secured claim holder will receive at least the value of the property. Unsecured creditors need not be paid in full as long as the debtor is paying all of his/her projected disposable income over the applicable commitment period and as long as unsecured creditors receive at least as much as they would under a Chapter 7 case.

Finalizing the Plan

A confirmation hearing will be held to determine if the court can approve the proposed plan of the debtor. If the plan is confirmed, the trustee will distribute the funds to the creditors. The debtor must make regular payments to the trustee for the plan to succeed.

Upon completion of all plan payments, the debtor will receive a discharge. Generally, the discharge releases the debtor from all debts that were provided for in the plan or disallowed with some exceptions of certain debts. A fresh start is given to the debtor.

To learn more about the benefits of Chapter 13 bankruptcy, contact Laurie A. Knight, Attorney at Law, LLC at (636) 200-5533.

Why Choose Attorney Laurie Knight?

  • Free Consultation

    Every initial consultation is free of charge. No hidden fees!

  • Extensive Experience

    Attorney Knight has been perfecting her legal practice for over a decade.

  • Excellent Work Ethic

    Attorney Knight handles each case with respect and the utmost diligence.

  • Flexible Appointment Schedules

    Attorney Knight is available when YOU need help. All appointment times are flexible.

  • Personal Approach

    Every case is personal and no client is left in the dark.

  • Classic & Professional

    Attorney Knight values professionalism and integrity with every case and every client.

Contact Us Today!

How to Reach Us 636.200.5533 13321 N. Outer 40 Road, Suite 500
Chesterfield, MO 63017 Map & Directions [+]
Fill out a form or call the office today to schedule your free consultation!
  • Please enter your first name.
  • Please enter your last name.
  • This isn't a valid email address.
    Please enter your email address.
  • This isn't a valid phone number.
    Please enter your phone number.
    You entered an invalid number.
  • Please select an option.
  • Please enter a message.