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The Minimum Percentage of Debt Repayments In A Chapter 13 Bankruptcy Is 8 To 10 Percent
Interviewer:What percentage on their debt do people have to typically payback in a 13? I mean is there much benefit doing it or no?
James Logan:I’d say the minimum percentage is about 10 to 15 percent. Most of the cases that we file are following that range because they’re filing to save their house not to pay off their debts. But if you had a lot of equity in a house that we couldn’t protect in a chapter 7, we might have to file what we call a 100 % chapter 13 plan where you ought to pay a 100 % of what your debts are, which can be a good deal because a creditors only have a 120 days from the day you file to file a claim with the court.
An Individual Having Equity May Not be Able to File a Chapter 7 Bankruptcy
So, if, say, you have $20,000 in debts and we file a chapter 13 and only $15,000 of them file claims but then, you’ll only have to pay the $15,000 and the other $5,000 will get wiped out, so it could still be a good deal for you in a 100 percent plan. But if you have got equity, you may not be able to file a chapter 7.
Occasionally People May Find Themselves Ineligible to File for Bankruptcy Because They Have Too Many Assets and Not Enough Income
Interviewer: Do you ever get people that are falling between the two and neither solutions really good maybe because they have too much debt, I mean their debt’s ceiling?
James Logan:The most common situation, elderly clients who come in and their house is free and clear and it’s worth $100,000 or more and they’re on social security of, $800 to $1,000 a month. They’ve got $30/40,000 in debts, they don’t make enough to file a chapter 13 because the plan payment would be $7/800 a month which would be their entire income. And we can’t do the chapter 7 because they would lose their house in a chapter 7, so they’re stuck between the rock and a hard place. Sometimes, we can do a reverse mortgage and get them out of debt that way but there are people that we just can’t file any chapter for because they fall under that, too many assets that we can’t protect and not enough income to pay what they would have to pay.
The Limit for Filing a Chapter 13 Bankruptcy is $ 1.3 Million for Secured debt
Interviewer: So anyone can owe too much money where they’re, for some reason, not allowed to file 13 or 7?
James Logan:There is a limit in chapter 13, it’s about 1 million now for secured debt, which came up a couple of times during the boom years when people had these in enormous million dollar mortgages, or $383,000 in unsecured debt. Chapter 7 doesn’t matter how much debt you have and you can always file a chapter 7 if you meet all the other requirements.
Call Us Today For A Free Consultation To Discover:
If Chapter 13 Bankruptcy is the right choice for you.
How to take control of your future with Chapter 13 Bankruptcy in Maryland.
How to overcome the burden of debt and make strong steps toward a better financial future.
FREE CONSULTATION
OR
CALL 443-860-0088
Word From Our Clients
4.8
Based on 77 reviews
10:17 29 Jun 23
I received exceptional service from James Logan would definitely recommend his services to anyone in need
17:38 16 Jun 23
Very professional, to the point at hand and truly cares for their clients
17:24 16 Jun 23
I Had a great experience with this law firm they helped me out Tremendously I highly recommend if you need a fresh start this is the place to start
20:30 17 Jan 23
I had a great experience working with the office of James R. Logan. Everyone I’ve work with in the office from Elaine, Renee, Susan, Jim, and Mr. Logan had excellent customer service, were very responsive, and knowledgeable in their areas of expertise plus more!
00:20 07 Jan 23
23:55 25 Aug 22
My experience with filing bankruptcy, with James Logan, was is a wonderful experience. I was assigned someone to help me with my bankruptcy, wasn’t stressful. They were very professional throughout the whole process.When I had any questions, if they weren’t available, I left a message, and they would return my call.promptly. I’m so grateful for this fresh start .Thank you James , Susan , and Amy
14:40 03 Mar 22
I absolutely received wonderful service from this Law Office . Ken Bond and Susan Mays have been amazing through the whole process. Ken walked me through each step in the beginning, organizing my case , being flexible and always quick responding to any of my concerns .Susan Mays doesn’t play games in the court room, She is straight forward and is highly intelligent in her skills as a litigator .This is my 2nd time working with this law firm . Jim Logan knows his stuff and makes everything simplified for you to understand. I really wish it more stars to give this law office . Just an amazing team overall.
19:00 15 Feb 22
The folks at the law firm have always been responsive to my questions and concerns. They also continue to work with me to make my situation better. The occasional email to check with me to see how I’m doing is nice. Special thanks to Ken Bond who has been my main contact from the beginning and has answered all my questions and been there when I needed him
03:57 04 Feb 22
I truly recommend this company for a stress free bankruptcy. Great staff that’s always available to answer any and all questions. Oh and the price was great ⭐️⭐️⭐️⭐️⭐️
18:33 03 Feb 22
Overall great experience. Was nervous calling but by the initial call I was at ease. Every part of the process was explained and executed quickly. The people that helped me were extremely personable , thorough and overall very friendly. 10/10
21:45 01 Feb 22
This is the best lawyer's office ever, they are so professional compassionate and real care about their clients!!! They did what ever it took to fight for my case for years and still doing so as of now and I'm so grateful to have lawyers like them on my side!! I would definitely recommend them to all my family and friends!! And Ms Susan Mays is the best she really listens to you!! Thank you James R Logan firm!!!
04:58 25 Nov 20
Excellent customer service. Mr. James Logan and his team members are so professional and efficient. His team members follow up with my case constantly. They have been leading me on what I need to do next step. Ken and Susan are awesome. I definitely don’t need to worry about anything. Thank you, I can have a fresh start. 100% Recommend.
