Chapter 13 Bankruptcy
Can Chapter 13 Bankruptcy Help Clear Your Debt?
What is a chapter 13 bankruptcy? A chapter 13 bankruptcy is also commonly called a wage earner’s plan. A chapter 13 bankruptcy enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter of the bankruptcy code, debtors propose a repayment plan to make installments to creditors over a period of three to five years.
When you’re deeply in debt climbing your way out may seem impossible. Most people want to pay back what they owe, but mounting financial pressures and the cost of ordinary living make paying off debts seem a far away dream. In these situations filing a Chapter 13 bankruptcy can be the extra boost needed to start paying back debt and restoring good credit.
Depending on your circumstances, there are numerous advantages to filing a chapter 13 over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under chapter 13, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers. A chapter 13 also acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.
The Law Office of Sara Tremel takes pride in helping individuals file for Chapter 13 bankruptcy and establish viable repayment plans for debts. As a qualified bankruptcy law firm, The Law Office of Sara Tremel has helped numerous debtors recover from their debt and return to living financially healthy lives.
We can help you with all the particulars and paperwork involved in establishing chapter 13, including:
- Analyzing your debt
- Determine eligibility, calculate your income, and determining an affordable payment plan
- Establish your property and allowable exemptions
- Complete and file all forms
- Represent you at hearings and help negotiate a payment plan with creditors
Beyond guiding you through the chapter 13 process, The Law Office of Sara Tremel will instruct you as to the best course of action. A chapter 13 plan is not for everyone, and there are numerous factors to consider. No matter your situation, you can always trust The Law Office of Sara Tremel to provide honest legal counsel that helps with your debt.
Start Paying Back Your Debt With the Help of The Law Office of Sara Tremel. Call or email us today to schedule your Free Consultation!