Under Chapter 13, a plan is set up to repay some portion of your debts under the protection of the Court. Typically, payments are made over a period of three to five years. While you are under the plan, you are protected from your creditors. You cannot be sued, garnished, or harassed about the debts in your plan. Chapter 13 can be a good choice if you are facing a foreclosure or repossession of your car, or if your wages are being garnished. Chapter 13 can stop these actions and allow you to deal with your debts at a payment level you can afford. Starting a Chapter 13 case is especially easy, since your attorney fees can be included in the repayment plan, and even the court costs can be paid in installments if necessary.

It is usually possible to refile under Chapter 13 after a case has been dismissed. However, you must be able to show that you have sufficient regular income to make the new plan feasible. If a car or other collateral has been repossessed, it can usually be recovered, provided that it hasn’t been sold to a third party and the new plan provides for payment of the debt.
 
If you have had a prior case pending within the last year, your attorney must file a motion to extend the automatic stay which goes into effect when your case is filed. Otherwise the stay would expire 30 days after the case is filed, putting your property in jeopardy. Motions to extend the stay are usually granted without dispute.
 
If you have had 2 prior cases pending within the last year, the stay does not go into effect automatically. Your attorney must file a motion to impose the stay. Otherwise, your creditors could try to repossess and dispose of their collateral. Motions to impose the stay are also usually granted, but you will likely have to show the court that your circumstances have changed and that the new plan is workable.
 
If you are considering filing a new case after dismissal of a previous case, it is very important to consult with an experienced attorney right away. Your attorney may be able to formulate a more favorable repayment plan so that the new case will be more likely to succeed.

If you are in a Chapter 13 plan and are unable to keep the payments current, the Trustee, or one of your creditors, may file a motion to dismiss the case. If this happens, you must move quickly to correct the situation.
 
In some districts, you must file a written response to the motion, or it will simply be granted without a hearing. In other districts, the motion is always set down for a hearing. If a response is required, make sure that your attorney files one promptly. If not, you may want to consider filing a response yourself.
 
It is often possible to save a plan that has fallen into arrears. You may be able to propose a cure of the delinquency by making additional payments, or through a lump sum payment from future income such as a tax refund. You may be able to negotiate a “Strict Compliance Order” that lets the plan continue as long as all future payments are made timely. Or, you may be able to modify the plan to provide for a lower payment. All of these possibilities should be discussed with your attorney, or in the alternative, with the Trustee’s attorney.
 
If it is not possible to save the plan, you may want to consider converting your case to a Chapter 7 bankruptcy rather than letting it be dismissed. This can sometimes be less expensive than having the case dismissed and then filing a new Chapter 7 case.
 
If the case is dismissed, you may be able to file a new Chapter 13 case, if you can show that the new plan is feasible. Of course, all payments under the new plan will have to be paid in a timely fashion, or you will soon be facing another dismissal. Repeated dismissals can result in an order that prevents you from filing for a period of time.
 
It is critical that you get qualified, experienced help when you consider filing, and when you are already in, a bankruptcy case. If your attorney is unresponsive, it may be time to seek new counsel, particularly if your case is dismissed and you need to refile.

You will meet with an attorney at your initial consultation.

Some other law firms have you meet with an assistant or paralegal first. With these firms, you may not even meet your attorney until your first court date. We feel it is important to meet face to face, so you can shake hands with the person who will actually represent you and get to know them. Most importantly, a paralegal or assistant cannot properly assess your options and advise you about the pros and cons of the bankruptcy process.
 
You will receive advice specific to your situation
Most people have a general idea of how bankruptcy works, but do not fully understand how it applies to them. This leads to misunderstandings about who can file for bankruptcy, which debts are eligible for discharge, and what happens with property and belongings. The initial consultation is our chance to clarify bankruptcy laws and how they apply to you and your specific situation. We will discuss your goals and priorities, and outline the different options available to accomplish them.
 
You will not file bankruptcy at your initial consultation
Under certain circumstances (foreclosure, repossession, garnishments), we can file a bankruptcy case immediately following the consultation. However, we normally encourage our clients to take the time to consider their different options. We understand that filing bankruptcy is a big decision that should not be entered into without advice and consideration. We want our clients to be comfortable with both the case they are filing and the attorney representing them before going forward with filing.

Filing a bankruptcy case is not a cure all. In some circumstances, however, it may make sense to clear out old debt that you cannot pay so as to focus on rebuilding credit using debt that you can keep current. It is rarely a good idea to file bankruptcy just to help rebuild credit, but there may be other good reasons to file. In some circumstances, it is the only way to get a fresh start. The decision to file a bankruptcy case should be made only after consultation with an experienced bankruptcy attorney.