The Chapter 13 Bankruptcy Services of the Selbach Law Firm

Dealing with overwhelming debt, but you're not ready to throw in the towel with Chapter 7 Bankruptcy just yet? Do you want to dig yourself out without just walking away from your debt? Entering into A Federal Debt Adjustment Plan or Chapter 13 Bankruptcy (referred to here as a “debt adjustment plan”) with the Selbach Law Firm may be perfect for you.

At The Selbach Law Firm we help people just like you enter into a Federal Debt Adjustment Plan, or Chapter 13 Bankruptcy, where you pay monthly payments based on what you can afford to pay, not on what your creditors are demanding. Your secure payments are paid through a plan supervised and protected by a Federal Court, not some questionable company. As your lawyers we obtain a court restraining order that makes it illegal for your creditors to do anything to collect the debts.

The Following are the protections offered by Chapter 13 Bankruptcy.

Stop Foreclosure. Chapter 13 can immediately stop a foreclosure and forces the bank to take the past due payments over a five year period. This is a very powerful option that can save your home.

Mobile and Manufactured Homes
If you have a loan on a mobile or manufactured home and you owe more than it is worth,
there is a solution that you may not be aware of. In a Chapter 13 reorganization bankruptcy case, you can drastically reduce the monthly payment, and immediately stop foreclosure. You are re-writing the loan without the lender's consent.

Second Mortgages
In a Chapter 13 case, depending on the property value and the amount of the first mortgage,you may be able to completely remove a second mortgage from your home.

You Don't Walk Away from Your Debt, You Pay It- Unfortunately, in many situations, the only option is Chapter 7 bankruptcy (referred to here as “straight bankruptcy”). Straight bankruptcy involves walking away from your debts. If a person has absolutely no income left after paying living expenses, straight bankruptcy is necessary. No matter how you spin it, however, straight bankruptcy involves stiffing your creditors. You wipe out the debt and walk away. If you're not ready to take this approach, but need some help in making some payment to your creditors, a debt adjustment plan will work perfectly for you.

You Are Protected from Your Creditors- There comes a point where all your creditors want their money in a way that is impossible for you. Creditors will hire collection lawyers to sue you, garnish your wages, freeze your bank accounts and repossess your vehicles. In a debt adjustment plan, you are given a court restraining order which stops all your creditors in their tracks. It becomes illegal for them to do anything to collect the debts. This takes the pressure off while you are making monthly payments. Not even traditional debt consolidation agencies can give you this protection.

You No Longer Have Direct Contact with Your Creditors- Once you enter the plan, you will be making one monthly payment to a court appointed person who will pay your creditors. You will no longer have any direct contact with your creditors or their collection agents or lawyers.

Your Monthly Payments Are Based on What You Can Afford- When all of your creditors are demanding payments that you can't afford, a plan to repay them becomes impossible. Everybody wants their money and you can't blame them. At the same time, your monthly payment needs to be affordable. In a debt adjustment plan, your payment is based on your take home pay and your living expenses, not on what your creditors are demanding.

Your Payments Are Made under the Supervision of a Federal Court Judge- With a debt settlement company your payment goes to some unknown person in another state. The company is not answerable to anybody and is not licensed or regulated. The company can do whatever it wants with your money and it usually does. Many times the money doesn't go to your creditors. It ends up in the companies' pockets. In a debt adjustment plan your payments go to a trustee who is appointed by the Department of Justice and he or she makes payments to your creditors under the supervision of a federal court judge. The payments must be distributed to your creditors in accordance with the court's order and the United States Code. Every penny of your money is accounted for. The court appointed party makes regular reports to you and to the court as to where your money is going. In addition, no one can take any fees or charges from your money without prior court permission. Unlike the debt settlement companies, no one can just help themselves to your money.

You Are Debt Free at the End of the Plan- A debt adjustment plan can last from three (3) to five (5) years. In some cases, it can be less than three (3) years depending on the amount of the debt. No matter how long the plan is, however, when it is over, you receive a court order which completely absolves you of the debt even if you've only paid a portion of the debt.

You Don't Need Your Creditor's Consent- Debt consolidation and debt settlement won't work if your creditors don't voluntarily agree. Some major creditors refuse to work with debt settlement companies. In debt consolidation, some creditors will reduce interest, some won't. Some will consent to the program, some won't. Debt adjustment plans, however, don't require your creditor's consent. It is not voluntary on their part. Legally,they have no choice.

No Interest or Charges Can Be Added to the Debt-Once you enter the plan, no interest or other charges can be added to your unsecured debt. This allows your payments to directly reduce your principal balance.

There Are No Tax Consequences- Consumers are often not told that debt that is forgiven in debt consolidation and debt settlement can have tax consequences. The forgiven debt can be taxable income creating a new tax liability for you. Under the Internal Revenue Code, debt forgiven in a debt adjustment plan is never taxable income.

Your Attorney Protects Only Your Best Interests- Most people don't know that some of the largest debt consolidation companies were formed by and are financed by creditors. Their funding actually depends on how much money they get from you. This raises obvious questions of conflicts of interest. Who is the company working for? Wouldn't you want to know that the credit counselor you are meeting with is being paid by your creditors based on how much he or she gets you to pay? In a debt adjustment plan, you are represented by a licensed attorney who has a legal and ethical obligation to zealously represent your interests only.

You Have Access to Proper Legal Advice- There is simply no way to properly deal with a personal financial crisis without addressing your legal rights. Your creditors are using legal counsel to protect their interests. You should do the same. It is amazing how consumers get pushed around by creditors simply because they don' t know their legal rights. Creditors couldn't get away with most of what they do if you knew what they know. Many debt collectors operate on a bluff. They will tell you that they will do things that they know full well they can't do. During a debt adjustment plan you have access to a lawyer who can protect your interests and answer your questions. Debt counselors are often well meaning, but they're still not lawyers. Having an experienced lawyer on your side can make all the difference.

Debt Adjustment Plans Have a Proven Track Record- The idea of debt settlement is brand new. A tidal wave of these outfits have sprung up in just the last few years. These companies have not established that they offer consumers a valuable service. Debt adjustment plans, however, have been the law for more than thirty (30) years. These plans are administered by well experience professionals.

There Is Full Disclosure- Investigations of debt settlement companies have shown that many of the fees charged are hidden or not fully disclosed. When you sign on the dotted line with these outfits, you often don't know where your money is going. In a debt adjustment plan, everything is disclosed up-front. Before you begin your plan you know exactly how much you will be paying over a specified period of time and you know where every penny will go.

No Assets Are Sold in a Debt Adjustment Plan- Unlike straight bankruptcy, there is no sale of any assets in a debt adjustment plan. It doesn't matter what you own, you keep all your assets.

You May Be Able to Re-write Vehicle Loans- Depending on how old the loan is, you may be able to restructure a vehicle loan in a debt adjustment plan. If you owe more on your vehicle than its worth, you could save a substantial amount of money and lower your monthly payment.

The power of a debt adjustment plan is best seen by example. Let's say you have $10,000 of past due credit card debt. All of your creditors have bumped your interest rate to24.99%. Even if you sent them $225 per month, it would take you ten and one half (10 ½) years to pay them off. Let's also assume you have a $15,000, 9%, 3 year car loan. Your payment is $477.00 per month. You've paid one year on the loan. The car is now worth $5,000. You are paying $702.00 per month on debt. ($477 plus $225). In a five year debt adjustment plan you would pay all the $10,000 credit card debt and the car loan for $435 per month. You would no longer pay the credit card debt or the car loan directly to the creditors. You would make one payment of $435 per month to the court appointed trustee. At the end of the plan, you would have no debt.

You Can Protect Co-signers- The court restraining order that protects you while you are in the plan, also protects other people who have consigned your loans.

You Get a Sense of Accomplishment- Unlike straight bankruptcy where you throw in the towel and walk away, in a debt adjustment plan, you know that you did the best you could to repay your creditors. If you feel a sense of moral obligation to repay your debts, you will get a real sense of pride and accomplishment when completing your plan. Everything isn't about money. To many people their self-esteem is very important.

Get the real facts and know your options. There is a solution for you.

Call us today and we can help!

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“You can help yourself get out of debt with managable payments and legally stop creditor harassment.”

 

*Under federal law we are considered to be a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.