What Is Chapter 13 Bankruptcy?
Filing for Chapter 13 does not erase your debts. It does, however, provide immediate relief from creditors and allows you to repay part of your debts over a period of several years. You may be a candidate for Chapter 13 bankruptcy if:
- Your income is too high to file for Chapter 7 bankruptcy
- You need to catch up on your mortgage
- You want to keep assets that would be forfeited under Chapter 7
Under Chapter 13, a bankruptcy trustee examines your income, expenses, and debts to determine a monthly amount that you can afford to pay. If you make all the payments for 36 months or 60 months (three to five years), the rest of your unsecured debts are forgiven.
On the date that you file for bankruptcy protection, creditors must stop collection actions, including garnishment, repossession, and foreclosure. They cannot call you or take you to court. Chapter 13 allows you to keep all of your property. Read more about Chapter 13 in the firm’s bankruptcy blog.
Additional Benefits Of Chapter 13
Experienced and knowledgeable attorneys can guide you through the process of Chapter 13 bankruptcy. Some additional benefits of this kind of bankruptcy include:
- Filing for bankruptcy can delay foreclosure proceedings to catch up on your mortgage or buy time for alternative solutions.
- Chapter 13 may allow you to discharge a second mortgage on your home if you owe more than what your home is currently worth.
- Chapter 13 can restructure your auto loan to make it more affordable if you owe more than what your car is currently worth.
It’s a stressful time for you and your loved ones, and the emotional toll is a burden. Let Robert J. Adams & Associates Inc. do some of the heavy lifting so you can get back to your life. When a reliable team of bankruptcy attorneys on your case, you can take a deep breath and feel confident that your situation is in good hands and that a more financially stable tomorrow is within reach.