Sometimes bad things happen to good people. If those bad things include finding yourself with serious financial problems, you may want to consider filing Chapter 13 bankruptcy. Chapter 13 of the U.S. bankruptcy code allows people who have a regular income source the opportunity to reorganize their financial affairs and propose a plan to a bankruptcy judge whereby they can repay the money they owe to their creditors over a period of 3 to 5 years. One of the benefits of Chapter 13 bankruptcy is it enables people to retain ownership of their property.
Individuals who are considering bankruptcy generally have two options. They can file for Chapter 7 or Chapter 13 bankruptcy protection. Chapter 7 bankruptcy is sometimes called debt liquidation because it gets rid of all your debts without you having to repay any money to your debtors. However, a person filing Chapter 7 may have to give up their homes and automobiles. Chapter 13 bankruptcy, on the other hand, is called debt reorganization. People who file Chapter 13 must make arrangements to repay their debt. With the help of the bankruptcy court the person filing Chapter 13 is given the opportunity to make a series of payments to satisfy their debt.
Depending on the amount of money you owe and the amount of your regular, verifiable income, the bankruptcy court will decide whether you are eligible for Chapter 13 bankruptcy. If you qualify, they will create a debt repayment plan which will be administered by the court. People whose applications to file Chapter 13 are accepted usually have their attorneys negotiate with the bankruptcy court on the size of their monthly payment and whether that payment will be made for three or five years to satisfy their debt.
Under Chapter 13, some debts will be paid in full while some creditors will receive only a percentage of the money they are owed. The unpaid portion of the debt may be discharged when the Chapter 13 plan has run its course if the bankruptcy court deems you have made a good faith effort to pay off all your debts. Many people prefer to file for Chapter 13 bankruptcy because they can get to keep their home and their automobile while they work to repay their debt. People who file for Chapter 7 bankruptcy often have to forfeit all their assets to satisfy their creditors.
There are many benefits to filing for Chapter 13 bankruptcy. One benefit is it allows people to stretch out the repayment of their taxes, student loans, and other types of non-dischargeable debts for up to 5 years. Another benefit of Chapter 13 bankruptcy is it allows the debtor to avoid foreclosure on their home and prevent the repossession of their vehicle if they have fallen behind on their payments. The debtor is given an opportunity to make up those missed payments as part of their bankruptcy plan. Chapter 13 also prevents creditors from going after cosigners to make them repay the loan.
Not everyone is eligible to file Chapter 13. In order to qualify you must have enough regular income to make the required monthly payments to the bankruptcy court while continuing to pay the ongoing expenses you have. However, people who have large incomes and want relief through bankruptcy do not qualify for Chapter 7 and must file for Chapter 13 protection. The bankruptcy process is complex. You need the help of an experienced bankruptcy attorney. We can help. Contact us and we will schedule a free consultation and answer any questions you have about the process.
Bankruptcy laws vary slightly from state to state. We are experts in New York State bankruptcy law. We can help you to understand the laws, exceptions, and statutory requirements for filing Chapter 13 bankruptcy in New York State. This includes the fact that the bankruptcy court can approve your application for Chapter 13 bankruptcy whether or not your creditors approve of the plan. We will discuss homestead exemptions, motor vehicle exemptions, and other pertinent facts related to your specific set of circumstances.
We can show you how you can protect the assets and lifestyle of you and your family. We have many years of experience dealing with Chapter 13 bankruptcy filings in New York. When you retain our services, we will give you the benefit of our experience and help you to navigate what can be a difficult process. Our attorneys will give you step by steps directions for dealing with the entire process and explain what you can expect to face. With our support, directions, and legal advice we can help to make what can be a byzantine process clear and simple and work with you and the bankruptcy court to help to create a plan that will enable you to get a fresh start.