Chapter 13 Bankruptcy enables a person dealing financial difficulty to significantly reduce their outstanding debts while still being able to retain their assets. Oftentimes when a client files a Chapter 13 Bankruptcy their debt is significantly reduced, if not completely eliminated. A typical Chapter 13 repayment plan requires a person to repay a small portion of the debts owed over 3 to 5 year period. During the plan period, monthly payments are made towards the past due debt, based on your disposable income. The payments are prioritized, secure creditors get paid first and unsecured creditors receive what's left, if any. If all Chapter 13 plan requirements are met and payments have been made as scheduled, any remaining unsecured debt is discharged.
When facing foreclosure or repossession, Chapter 13 is often the answer as an automatic stay is placed against any proceedings. The automatic stay prohibits the commencement or continuation of creditors' foreclosure or repossession proceedings against you. Once the stay is in place, creditors must cease all collection efforts, including harassing phone calls.
Benefits of Chapter 13
- Immediately Stop Automobile Repossessions
- Immediately Stop Foreclosures
- Catch Up Missed or Late Mortgage Payments
- Catch Up Missed or Late Automobile Payments
- Restructure Automobile Loans
- Immediately Stop Wage Garnishments
- Reduce Some IRS Debts and Pay Others At 0% Interest and Penalty
- Repay Other Debts at a Fraction of their Balance
If the filing of a Chapter 13 Bankruptcy is appropriate in your situation, we will develop a plan based upon your budget and the property you are keeping.