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Idaho Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a debt consolidation and partial repayment of your debts. Instead of paying the amount you owe, you contribute your “disposable income” over a fixed period of time. With few exceptions, any debts remaining after your Idaho chapter 13 plan are then discharged or forgiven. Chapter 13 plans in Idaho typically range between 36 – 60 months in length.

Requirements of a Boise chapter 13

Chapter 13 bankruptcy requires that you have a relatively steady source of income, agree to pay a portion of your income to your creditors, and meet a number of other requirements such as repay any priority debt and any past due secured debt the property of which you desire to keep.

Chapter 13 Power with Mortgages – Rehabilitate late pay & Eliminate Negative Equity

Because the debtor is making his best efforts to repay the debts, Chapter 13 provides for more tools to restructure your debt. The four most common benefits of a that chapter 13 that is not available in a chapter 7 bankruptcy include: (1) bringing secured debts current over time; (2) reducing the interest rate on an auto loan; (3) reducing the principal of a secured debt when the debt amount exceeds the fair market value of the asset (this is called cram-down); and (4) discharging debt that is owed under a divorce decree (called super discharge).

Bringing Secured Debts Current Over Time

If you are behind on your mortgage or car loan, we can help you save your car or home. Chapter 13 allows you to take the amount that is delinquent and put that amount into the chapter 13 plan, which is repaid over the plan period. At the end of the plan, your are then able to keep the property. This is an extremely powerful tool to avoid foreclosure.

Reduce Your Interest Rate

When you are paying a high interest rate on an auto loan, chapter 13 may help you reduce the interest rate by paying the loan off as part of a chapter 13 plan. With some exceptions, the rate for an auto loan is a prime rate plus 1-2%. If you are paying a high interest rate, this can save you thousands of dollars over the life of the car loan.

Reduce the Principal of a Secured Debt a/k/a Cram-down

If you have negative equity in secured property the negative equity can be reduced or eliminated. For example, say you have a first mortgage on which you owe $300,000 and you have a second mortgage of $50,000, but the property is only worth $295,000. In this case you can completely eliminate the second mortgage of $50,000 because the value of the home is less than what is owed on the first mortgage. This is also true for auto loans, under certain circumstances. You could potentially save thousands.

Discharge Debts As Part of a Divorce Decree

Chapter 7 bankruptcies do not discharge debts that you owe to a former spouse as part of a divorce decree. Chapter 13 bankruptcies, however, will discharge debts arising from the division of property and the division of debt. Unfortunately child support and alimony are still non-dischargeable in chapter 13 cases.


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The Power of Chapter 13 Bankruptcy

Stop Foreclosure, Wage Garnishment & Creditors

Filing a chapter 13 bankruptcy will immediately  stop creditor harassment, wage garnishments, foreclosure, and get the debt relief you need. If you are struggling to cope with any of these issues, get a free bankruptcy evaluation from one of our experienced bankruptcy lawyers to find out if filing for chapter 13 is right for you. Chapter 13 has more tools to restructure debts than chapter 7, including:

  • bringing past due mortgages or auto loans current;
  • restructure underwater property;
  • protect against future medical debts;
  • repay taxes under the protection of bankruptcy;
  • reduce interest rate on auto loans;

If you are facing any of these issues, contact us today for a free consultation. Rest assured that with our firm, we will always recommend that chapter that best applies to your individual situation.

Save Your House

Are you behind on your mortgage due to a temporary financial hardship? If so and you want to keep your house, we may be able to help you! With the power of chapter 13 we can immediately stop foreclosure and through your chapter 13 plan payment, you can bring your past due amount current over a period of time allowing you to keep your home.

Reduce Your Interest Rate On Auto Loan

One of the additional tools of chapter 13 over chapter 7 is the ability to restructure some short-term secured debts. If you have an auto loan, for example, that has a high interest rate, this can save hundreds if not thousands of dollars. The way it works is the auto loan is repaid in the chapter 13 plan. The interest rate paid through the plan is lowered to the Till rate plus a small percentage. This is a HUGE benefit in high interest rate cases. There are limitations as to when this option is viable, so contact us today to see how we can help you restructure your secured debt.

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What’s the Difference Between Chapter 7 and Chapter 13?

Chapter 7 bankruptcy is a liquidation. Your property is designated either “exempt” property, which is protected or non-exempt, which is unprotected. Any unprotected property may be sold or liquidated (hence the term liquidation) on behalf of your creditors. In Chapter 13 instead of liquidating non-exempt property, you make a monthly payment based on your disposable income to a bankruptcy trustee who distributes the payment to your creditors. You make the monthly payment to consolidate your debt for 36 to 60 months. At the end of the payment term your debts are discharged. Because you are making your “best efforts to repay your debts”, the bankruptcy code rewards you by allowing you to restructure secured debts, reduce principal, reduce interest rates, cure arrears, and even remove liens on property.

Why Are We The Leading Firm in Idaho?

Experienced Idaho Bankruptcy Attorney

Get the experience you need to ensure your case is handled with the attention and care you deserve. We handle each case as if you were family…because to us you are.

Affordable Idaho Bankruptcy

Unlike most Idaho Bankruptcy Attorneys, we make obtaining the financial relief you need affordable with our low upfront bankruptcy filing option

Flexible Payment Options

Whether you pay the full attorney’s fees upfront or select our low upfront bankruptcy option, you will be able to make flexible payments to pay for bankruptcy.

Friendley & Compassionate Staff

We know we are biased, but we think our staff is simply the best. They are friendly, understanding, knowledgeable and very experienced.

Proudly Serving Eagle, Meridian, Nampa, Star, Boise, & Caldwell

Our location is conveniently access from Emerald Street. With quick I-184 access from Curtis Road exit.

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(c) Copyright Weekes Law, PLLC 2011-2018. All Rights Reserved. This website is not intended to be legal advise or create an attorney-client relationship. Information, forms or documents are intended for general information only and may not be regarded as legal advice. Laws change periodically, and the contents of this site is not guaranteed to be up-to-date. It is highly recommended that you seek professional legal advice so you can understand your full rights and obligations under the law.Another great site by Visage Marketing
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