Chapter 13 Bankruptcy Explained
If you are an individual or small business with an ongoing source of income but need
help to deal with aggressive creditors, lawsuits, garnishment, private student loans, stop foreclosure, or keep a vehicle from being repossessed, then Chapter 13 may be your answer.
Chapter 13 Bankruptcy is a reorganization plan that may provide you an opportunity to catch up payments on your home or vehicles, or surrender them if you choose, while minimizing liability on debts. Chapter 13 also provides relief from unsecured debts and provides a discharge of those debts like a Chapter 7 Bankruptcy would. To qualify you must have a steady source of income to be able to make payments to the court over the course of three to five years.
Over a period of five years, and sometimes even in as little as 12 months, Chapter 13 allows a person to pay off a portion of their debt including past due payments on a home loan or car loan. The length of the Chapter 13 plan is determined by whether your income is above or below the “median income level”. If you file, all collection and repossession actions by creditors will stop immediately.
Chapter 13 can reduce the amount owed on investment (non-residential) property or a vehicle to its’ current market value, end collection efforts by the IRS, your Home Owner’s Association, and most other types of debt as well.
Say Goodbye to Your Second Mortgage
Second mortgages can often be stripped (removed) in Chapter 13 Bankruptcy cases. This process can take three to five years.
Contact us now to see how we can help you with filing Chapter 13 Bankruptcy.