If excessive debt is bearing down on you despite a comfortable income, Chapter 13 bankruptcy may be appropriate. By reorganizing your debt into a practical repayment plan, all collection efforts against you will halt and all property will be secured. Let an experienced Newport Law attorney in guide you through the complexities of Chapter 13 to lessen the burden of debt and protect all that you’ve worked to achieve.
The Advantages of Chapter 13 Bankruptcy
Also known as the wage earner’s plan, chapter 13 offers debt consolidation for homeowners that earn a steady income but are facing a large debt burden. Chapter 13 bankruptcy is suitable for people trying to avoid foreclosure or who have multiple properties. Benefits will begin immediately:
- All foreclosure procedures stop
- An automatic stay is issued against collection efforts
- Any co-signers are shielded
- Exempt and non-exempt property is protected
- Time is allowed to develop a manageable payment schedule
- Upon completion, significant debt may be discharged
Living on a fixed income can be challenging, if you simply need time and are able to make current mortgage payments along with your repayment plan, all property can remain in your family’s possession.
Frequently Asked Questions
WHAT IS CHAPTER 13 BANKRUPTCY? A Chapter 13 bankruptcy is also called a debt reorganization bankruptcy or a wage earner’s plan. It enables individuals or married couples with regular income to develop a plan to repay all or part of their debts. Under this Chapter, debtors propose a repayment plan to make installment payments to creditors over three to five years. The payments are made to the assigned trustee in the case and the trustee will distribute the funds to your creditors. Under certain circumstances, you do not have to pay the full amount of certain debts such as medical bills, credit cards, past due utility bills, and judgments. The minimum your creditors are entitled to depends on a review of the type of claim the creditor has and the value of your property, as well as other factors, including the property exemptions allowed by law.