Chapter 13 Bankruptcy is a reorganization of debts designed to help property owners keep their homes, cars and other valuable assets while getting a handle on debts. By filing Chapter 13, you may be able to stop foreclosure, repossession, wage garnishment and debt lawsuits, and significantly reduce or eliminate credit card debt. Ask a bankruptcy attorney if Chapter 13 is right for you.
A Chapter 13 Bankruptcy allows a filer to consolidate, prioritize, repay, and, in some cases, reduce or eliminate old debts while receiving the powerful protection against creditors that the bankruptcy court provides. Instead of dealing with multiple creditors and bills, Chapter 13 creates a single repayment plan that is managed by the court.
One of the most frequent reasons for filing a Chapter 13 Petition and Plan is to allow a homeowner to avoid foreclosure and the loss of their home. A Chapter 13 Bankruptcy prevents foreclosure if a homeowner can resume making their regular monthly mortgage payments, property taxes and insurance and make up the arrears on their mortgage over a period of 36 to 60 months. See some Examples of how Chapter 13 Bankruptcy can stop foreclosure and prevent the loss of your home and rental property.
Chapter 13 also prevents other creditors from collection activities such as creditor harassment, law suits, wage garnishment and auto repossession. Depending on the type of debt owed by you, your income and your assets, the Plan filed by you may provide that other debts be repaid at no interest over the life of the plan or that only a percentage of the amount owed be repaid or in some cases, no repayment is required.
The information set forth above is not legal advice which can be provided to you only after a full review and evaluation by an attorney of your particular circumstances and the remedies which may be available.