New Hampshire Chapter 13 Bankruptcy

Paying creditors over time

As an alternative to Chapter 7, individuals may choose to file Chapter 13 in New Hampshire. Attorneys at DeBruyckere Roth & Associates, PLLC can evaluate your financial situation and help you decide if Chapter 13 is a more appropriate option than Chapter 7 liquidation. In Chapter 13 bankruptcies, debts are not discharged, but are paid to creditors according to an established schedule.

There are several reasons why individuals choose Chapter 13 bankruptcy in New Hampshire:

• Ineligibility for Chapter 7: in 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which created a means test for judging the eligibility of Chapter 7 applicants. Under the means test, if an individual’s income is more than the state’s median income, then, in most cases, the individual cannot file for Chapter 7.
• Missed payments: if you are missing payments on a car loan or a mortgage, Chapter 13 could provide you with time to make payments.
• Student loans: student loans and other special forms of debt could be included in a Chapter 13 plan. Contact an attorney about Chapter 13 in New Hampshire for more information about how to pay debts over time.

Another possible reason why people choose Chapter 13 is the conviction that loans should be paid back as a matter of personal responsibility. Of course, the financial reality sometimes prevents people from realizing their good intentions.

For individuals with steady income

Not everybody is eligible to file for Chapter 13. Chapter 13 is also known as “wage earner bankruptcy” because applicants need a steady and stable income in order to qualify. Under Chapter 13, individuals formulate a repayment plan that could last between three to five years. If an individual’s income is greater than the state’s median income, then the plan can last up to five years; if the individual’s income is less than the state’s median, then the plan is usually three years.

The payment plan must be approved by creditors during a “341 meeting.” If you are filing for New Hampshire Chapter 13 bankruptcy, then you will have to fill out paperwork accurately detailing your income, property and assets, and debts as part of the repayment plan proposal. Attorneys at DeBruyckere Roth & Associates, PLLC can help you formulate a plan and present it to creditors.

Call 480-295-3470 for help with Chapter 13 in New Hampshire.