About Us
The Law Offices of M. Tilden Moschetti provides affordable and quality bankruptcy representation. Even though we have filed many of successful consumer bankruptcy cases, we understand that each client presents a unique set of circumstances and special needs which require individualized attention. We are a Debt Relief Agency. We help people file for relief under the Bankruptcy Code.
Chapter 13 consolidates and restructures
In Chapter 13, a plan is established to pay off all or a portion of your debts. Some people choose to file a 13 rather than a 7 because they can protect more of their assets under a 13. You pay a trustee, he pays your creditors. The one constant in the bankruptcy universe; once you file, your creditors can't pursue you, or your property, outside of the bankruptcy proceeding.
If you decide to file a 13, a trustee will be appointed by the court to administer your case. They go over your petition and may make suggestions in order for you to better comply with the laws. Your creditors are then notified that you have filed and are given the opportunity to file a claim. The clerk of the court schedules a meeting between you and your creditors. The trustee reviews the petition and presents the plan to your creditors.
Paying of creditors in Chapter 13
There are two types of creditors. A secured creditor has to file a claim before the first creditors meeting in order to be classified as secure. Simply put, a creditor is secured if you have put up property as collateral. You have a home and pay a monthly mortgage; your home is security, or collateral for the installments that you haven't paid yet.
An unsecured creditor means that there is no property put up as collateral. A credit card, doctor or hospital bills, (I don't want to think about what they'd foreclose on) or a bank card, are all unsecured. These creditors must file within six months of the time you filed the bankruptcy petition. As with a 7, the forms are mailed to your creditors letting them know when to show up for the creditors meeting.
Then, disbursements (money to your creditors) are paid. Usually your disbursements are paid as follows; administrative costs first, priority claims second, then secured debts, and last, but certainly not least, unsecured claims. The court reviews the plan and gives its approval. You are notified that you're required to pay a monthly amount to the trustee. Finally, the trustee disburses funds each month to the creditors, according to your plan. If you miss a payment, the whole matter may be dismissed by your trustee.
Contact us
If you'd like to set up a free consultation by phone or in person, please do not hesitate to contact us. Call us at (415) 399-0970 or simply complete this form and we'll contact you within one business day.