Chapter 13 Bankruptcy
Chapter 13 bankruptcy is referred to as wage earners bankruptcy. It is an excellent alternative to chapter 7 bankruptcy for individuals who have a steady income but are still facing high debts, such as mortgage debt. Under chapter 13 bankruptcy, an individual works with the bankruptcy court to create a plan to pay off most or all of the person’s debts within a 3 to 5 year period.
Benefits of Chapter 13
When you file chapter 13 bankruptcy, you have a much better chance of stopping foreclosure and holding onto your home than you do under chapter 7. Chapter 13 allows you to catch up with your mortgage payments. It also prevents your creditors from trying to collect debts from you during the 3 to 5 years you are given to repay your debts. Another benefit of chapter 13 bankruptcy is it does not require any of your assets to be liquidated, or turned into cash, like chapter 7 bankruptcy. Instead, your debts are reorganized to make them more manageable.
Chapter 13 functions like a consolidated loan. During the time you are given to pay off your debts, you make regular payments to a court-appointed trustee. The trustee then divides your payments appropriately amongst your creditors. This makes life much easier on you, giving you a chance to breathe without having to worry about creditors hounding you. Yet another benefit of chapter 13 bankruptcy is that it only stays on your credit report for 7 years. Chapter 7 bankruptcy stays on your credit report for up to 10 years.
With a payment plan under chapter 13 bankruptcy, you must either agree to discharge or clear all of your debts. You can also agree to put all of your disposable income toward paying off as much of your debts as possible in a 3 to 5 year period. Your disposable income is everything that is left over after your taxes and necessary living expenses are paid for.
At Marie F. Benjamin Law Firm, our attorney can walk you through the chapter 13 bankruptcy process so you can decide if this is an option that is beneficial for you. In many cases, chapter 13 bankruptcy is an alternative that can efficiently and permanently clear your debts. This type of consumer bankruptcy will also allow you to keep your home. When you choose to work with our law firm, we will make sure you understand all of your options so you can make an informed decision. Should you decide to pursue chapter 13, we can represent you in bankruptcy court to help fight for a payment plan that s fair and reasonable.
Declaring bankruptcy is a major decision. You don’t have to make it alone. Protect yourself and your assets by talking to our experienced chapter 13 bankruptcy lawyers today. Call us at 407-492-8056 to set up your free, no obligation consultation. We offer affordable, flat fees and are ready to help you regain control of your finances once and for all.
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