Helping Clients Secure Powerful Debt Relief in Omaha and Across Nebraska
Few things are worse than being unable to keep up with your bills. As you start to fall behind, debts can quickly grow and may even seem insurmountable. If you are receiving angry calls from creditors or are worried about losing your home to foreclosure, bankruptcy may be able to provide the protection and relief you need to get your life back on track.
At Lentz Law, our Lincoln bankruptcy attorney understands that financial difficulties often arise due to circumstances outside your control. Our Lincoln based Chapter 13 bankruptcy lawyer is compassionate to the unique challenges you are likely facing and offers no-judgment representation. We know the ins and outs of bankruptcy and can work with you to create a repayment plan that maximizes relief. No matter the extent of your debts, we can provide the support and resources you need to reorganize your finances and help you get back on your feet.
You will receive immediate relief as soon as you file for Chapter 13 bankruptcy. The automatic stay, a court order that stops creditor actions, promptly takes effect after filing. This means you will be protected from foreclosure, repossession, wage garnishments, and collection lawsuits until the order is lifted. In many cases, the automatic stay will remain in place until your case is over.
Soon after filing, you will need to propose a repayment plan that reorganizes all of your debts into a single monthly payment that must be made over a period of 3 to 5 years. The amount of this payment is tied to your disposable income – your current ability to pay – not the size of your total debt.
Certain types of debt, including tax debt and secured debts, receive priority over unsecured debts. Priority debts must be addressed before payments can go toward non-priority debts, which can work to your advantage. For example, missed mortgage payments have priority over unsecured debts. You can therefore devote more of your disposable income to bringing your mortgage current and avoiding foreclosure.
Once all court-approved payment plans have been completed, your bankruptcy case will end, and you will typically have the opportunity to discharge any remaining unsecured debts. Unsecured debts include credit card debt, medical bills, unpaid utility bills, and personal loans. Though you cannot in most cases discharge tax debt, student loan debt, or secured debt, you will greatly reduce or outright eliminate these obligations through plan payments. With your unsecured debts discharged, you will also have more financial resources to put toward these debts moving forward.
Our goal at Lentz Law is to do everything possible to secure the debt relief you need and deserve. Our Lincoln Chapter 13 bankruptcy lawyer can help you develop a repayment plan that maximizes relief and meets all legal requirements. We understand how Nebraska courts scrutinize plan proposals and will leverage our knowledge to benefit your case.
It may be helpful to complete the Nebraska Means Test to assess whether Chapter 13 bankruptcy is right for you. Compare your current monthly income to Nebraska’s median average income for your household size. If your income is less than the average median, you qualify for Chapter 7 bankruptcy and may want to consider that approach. If your income exceeds the median, you will need to determine your current disposable income by deducting qualifying expenses. If you have sufficient disposable income, you likely have enough to fund a repayment plan and can pursue Chapter 13 bankruptcy.
Chapter 13 bankruptcy can also be extremely useful if you have assets you wish to keep. In a Chapter 7 bankruptcy, non-exempt assets will be liquidated in exchange for a discharge of unsecured debts. This means you may lose your home, car, and other important items if you have too much equity in them or if they are too valuable to be exempted. Chapter 13 bankruptcy does not involve any type of liquidation process, so nothing will be sold to satisfy creditors.
Choosing to file for any kind of bankruptcy is a big decision. Our Chapter 13 bankruptcy attorney can evaluate your circumstances and advise how to move forward.
He was there when I needed him through my tough times over the past few years.Tonia A.