CHAPTER 13 BANKRUPTCY

No one enjoys or even really expects to get in a situation where the bills seem to have "taken over." It used to be that a regular job, steady income and a good day's work with money in the savings account were the ingredients of financial stability and the "American dream." Things have changed however, due to the recent downturns in the economy. Now, for many, expenses and bills have become overwhelming. The largest percentage of the economy in history is facing foreclosure and the thought of not only losing their home, but being homeless and out on the street. There are, however, options. The monthly bills can be brought under control without losing your home or personal possessions.

 

Chapter 13 Bankruptcy is often referred to as a "reorganization" Chapter, and it involves a repayment Plan that sets forth with specificity the manner in which debtors will settle their debts. This type of Bankruptcy establishes a payment Plan between the debtor and the creditors that is monitored by the U.S. Bankruptcy Court. Debtors can often keep their homes, property and possessions, but must make reasonable payments according to the Court's terms over a 36 month (3 year) or 60 month (5 year) period. Choosing to reorganize under Chapter 13 Bankruptcy rather than liquidate under a Chapter 7 Bankruptcy does have some advantages. Specifically, a debtor filing Chapter 13 can immediately halt mortgage foreclosures and automobile sale or repossession, thus retaining valuable personal property. And, the monthly payments on unsecured debt can be appreciably reduced so that they are much more affordable, if not erased altogether.

 

A Chapter 13 Bankruptcy allows individuals who have a steady source of income to pay part or all of their debts under protection of the Bankruptcy Court. If you file a Chapter 13, you file a Petition and a Plan with the Bankruptcy Court. The Bankruptcy Law requires that the payments you make through the plan to unsecured creditors have a value of at least what the creditors would have received if you had chosen to file a Chapter 7 Bankruptcy case.

 

By filing a Chapter 13 Bankruptcy you are able to immediately:

 

 

• STOP Harassing collection calls

• STOP Foreclosure actions

• STOP Repossessions

• STOP Wage garnishments

• STOP Law suits & Court appearances

• STOP Bill & collection actions

• STOP Property attachments

• STOP Feeling overwhelmed

 

However, even with the considerable benefits, many people considering Bankruptcy are afraid take the first step because they fear they may risk losing their assets and personal possessions. Please know that most people that file for Bankruptcy keep all of their assets.

 

Indeed, you could:

 

 

• KEEP Your home

• KEEP Your car & motorcycle

• KEEP Your modest bank accounts

• KEEP Your retirement accounts (pensions/401k/IRA)

• KEEP Your personal property and possessions

• KEEP Your Recreational vehicles

• KEEP Your sanity and dignity

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If you are considering filing Bankruptcy, or facing foreclosure, please Contact Us and speak with one of our experienced Bankruptcy Attorneys.  We will listen to your story, answer your questions, discuss your options, and get you pointed in the right direction.