Chapter 13
If you are behind on your mortgage payments or have assets that you could lose by filing Chapter 7 bankruptcy, you can protect your property and obtain debt relief by filing Chapter 13 bankruptcy.
Chapter 13 bankruptcy is a debt payment plan. However, it is very different from other types of debt consolidation plans you may have heard about. Only Chapter 13 bankruptcy gives you the full protection of U.S. bankruptcy laws. Michele Garfinkel offers a free initial Chapter 13 consultation to explain the difference between Chapter 13 bankruptcy and other types of debt relief.
Chapter 13 bankruptcy may be an option if you don’t qualify for Chapter 7 bankruptcy or you own your own home or other valuable assets and have a steady paycheck or have disposable income.
How Is Chapter 13 Different from a Debt Consolidation Plan?
With a debt consolidation plan, you are putting yourself in the hands of creditors. If one creditor doesn’t go along with the plan, you could still face home foreclosure, repossessions, wage garnishment, creditor harassment and other adverse outcomes.
When you file a Chapter 13 bankruptcy, you have the full power of the federal bankruptcy court behind you. You are in complete control and the creditors have to accept your terms. Most significantly, the interest stops accruing.
How Much of My Debts Do I Have to Pay Back?
In a Chapter 13 payment plan, our lawyers will help you propose a plan to pay back a percentage of your debt over a period ranging from three to five years. At the end of that period, any remaining debts will be discharged.
Secured debts, such as home mortgages and car loans, must be fully paid. For unsecured debts, such as credit card and hospital bills, you could pay pennies on the dollar. The exact percentage paid will depend on your disposable income and the value of your assets. You can also pay off tax debts to the IRS in a Chapter 13 bankruptcy plan.
If you lose your job, you may be able to convert your Chapter 13 payment plan to Chapter 7 bankruptcy and obtain immediate debt relief.
Contact Michele Garfinkel for a no-nonsense, no-cost evaluation of your Chapter 13 case.