How To File for Chapter 13 Bankruptcy in Maine
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How do I know if filing for Chapter 13 in Maine is right for me?
Filing for Chapter 13 allows you to propose a plan that could help you repay all or part of your debt over time. It’s ideal for debtors who have a regular income and don’t qualify for Chapter 7. Contact Shafto Law to learn how a plan like this can proceed.
Additionally, you may consider filing for Chapter 13 in Maine if you risk losing a number of properties by filing for Chapter 7. Or perhaps you have complex business structures and/or financial entities in which other parties or individuals are involved. In such a case, Chapter 13 may be right for you.
What is Chapter 13?
Chapter 13 is essentially a tool that allows you as a person in debt, with a regular income, to implement a realistic monthly plan for the repayment of your debts. Chapter 13 is also referred to as ‘personal reorganization’ or ‘reorganization’ in bankruptcy. This reorganization process allows you to repay your debts over a specified period of time as outlined by the legal system.
What do I have to do to file for Chapter 13 in Maine?
The U.S. bankruptcy code declares that to file for any chapter of bankruptcy you need to have received counsel from an accredited bankruptcy counseling agency in the last 180 days.
Hiring a lawyer for representation leading up to and during the filing process is advisable. You may contact Shafto Law at any time for a free consultation.
What are the benefits of filing Chapter 13 in Maine?
Restructure and Manage
With Chapter 13 you’ll be able to restructure your debts, avoid foreclosures, manage out-of-control debt, and hold off debtors. If you don’t possess the financial expertise to create your own repayment plan, Chapter 13 may be an efficient way of dealing with your debt.
Get a Manageable Repayment with a Trustee
Under a Chapter 13 bankruptcy, you and your attorney organize your non-dischargeable debts into a manageable repayment plan. A professional trustee is assigned to manage this loan with you over the life of the bankruptcy filing. The trustee helps you design the repayment plan that will clear this consolidated loan. Through this process, all the creditors will receive your payments via the trustee.
Halt unwanted activity from the courts, creditors, and other third parties
Chapter 13 stops court actions, can halt evictions, and alleviate you from creditor harassment. For example, a creditor will only be able to request direct payment from you during your bankruptcy through a legally obtained court order.
What can I expect when I file for Chapter 13 bankruptcy in Maine?
When you file for Chapter 13 bankruptcy in Maine you can expect to have your debts consolidated into monthly amounts that you pay via a trustee. The trustee is assigned via the courts to oversee your bankruptcy case. Typically, the trustee allows you to set up an automatic payment from your bank account.
Will the trustee check in on my finances?
No, during your plan the trustee assigned to your bankruptcy case in Maine will not check your monthly expenses or your expenditures.
Additionally, an order for relief, called an automatic stay, goes into effect during your bankruptcy. This stay will prevent creditors from harassing you about all debts.
While your repayment plan and your automatic stay are in place, creditors are not allowed to initiate or continue collection efforts.
In filing for Chapter 13 in Maine you can also expect:
To restructure your debts
Avoid foreclosures
Manage out-of-control debt
How long will my Chapter 13 bankruptcy filing in Maine last?
Once your Chapter 13 repayment plan is set up, the lifetime of the plan can range from 3-5 years. The repayment plan is based on your personal circumstance and income. Shafto Law can work with you to create the plan’s outline, and at a confirmation hearing, the court will disapprove or approve of your proposed plan. Your income, your property values, and your expenses determine the payment amount and the time period of your plan.
How is a Chapter 13 payment plan in Maine calculated?
Several factors are taken into account for calculating your Chapter 13 payment plan:
Your income
Your expenses & your disposable income
Your debts
Your property
Then, your disposable income, the amount leftover after daily living expenses and taxes are deducted, is used to pay off your debts. Some of the following are examples of daily living expenses:
Food
Housing/mortgage/rents
Utilities
Clothing
Taxes
Alimony and/or child support
Education costs (some apply)
Any childcare costs
Your healthcare
Will I lose everything when I file for Chapter 13 bankruptcy in Maine?
No. In filing for Chapter 13 in Maine, nothing will be taken from you. You may choose to sell your property(ies) as a means to fund your repayment plan. However, in Chapter 13 bankruptcy you’re able to keep your assets. Plus, a percentage of your ongoing income is used to fund your repayment plan. This process is unlike Chapter 7 where any of your non-exempt property may end up liquidated.
Will filing for Chapter 13 bankruptcy in Maine ruin my credit rating?
Filing Chapter 13 in Maine will have a less negative impact on your credit rating than filing Chapter 7. That’s to say, there can be some impact on your credit rating upon filing for Chapter 13. Please contact us to learn more.
Can I file for bankruptcy more than once?
Yes, you can file for bankruptcy more than once, but waiting times apply.
Is there a Chapter 13 filing fee?
The filing fee for Chapter 13 is $313. Bankruptcy court is Federal Court, so the fee is the same in all states.
Will everyone know I filed for bankruptcy?
No one besides your lawyer and your creditors really needs to know that you filed for Chapter 13. Although bankruptcy filings are on public record, they are not publicized.
How much is a Chapter 13 bankruptcy consultation with a lawyer in Maine?
An initial consultation with Shafto Law is free of charge. Contact us to set up an appointment and learn how we can work together to alleviate your debts.
Getting Help
As you seek to resolve your Chapter 13 bankruptcy needs in Maine, Shafto Law can help you navigate the often complicated decisions and legality that accompany that process. When you choose to work with us we’re with you through the entirety of your case. Your legal affairs will be handled with expert care and your legal matters will be resolved as favorably and efficiently as possible.
Resolve Chapter 13 bankruptcy with Shafto Law today. You can call us directly at 207-619-4006 or communicate with us via our Contact page. We look forward to working with you.
This article is not intended to be a substitute for professional legal advice and cannot be taken as such. Nor does this article establish any type of attorney-client relationship with Shafto Law. If you’d like to consult with us for advice concerning your specific needs, please contact us to set up an appointment. We are happy to help.
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Bankruptcy Resources
Debt relief under Chapter 7 offers a lot of flexibility. The process is typically fast, simple, and complete. In many cases, you will be completely debt-free in about 90 days. Read more.
When seeking relief from debt, bankruptcy is not your only option. Rather than file for bankruptcy, let our firm negotiate directly with your creditors. This process may result in a better solution. Read more.
Bankruptcy Means Test in Maine
Individuals seeking to file for protection from creditors under Chapter 7 of the bankruptcy code must pass, or be exempted from, the Means Test. Read more.
From our law office in Portland, we serve clients throughout southern Maine and the Casco Bay area.
“In filing for Chapter 13 in Maine, nothing will be taken from you. You may choose to sell your property(ies) as a means to fund your repayment plan. However, in Chapter 13 bankruptcy you’re able to keep your assets.”
“Hiring a lawyer for representation leading up to and during the filing process is advisable. You may contact Shafto Law at any time for a free consultation.”