NYC? Long Island Chapter 13 Bankruptcy Attorney
Halt Foreclosure, Repossession, and More
A Chapter 13 bankruptcy, also known as the wage-earners' bankruptcy, consists of an interest-free repayment plan that you file with court to pay off a portion of your unsecured debt over a 3 to 5 year period. If you successfully complete the plan, at the end of your repayment period any remaining debt is generally discharged. To qualify for such a plan, therefore, you must have a steady source of income which allows you to support yourself while making your required payment on the plan to the court.
During the repayment period, your creditors will only be able to collect what has been approved by the court in your repayment plan, regardless of whether they agree with it. Your creditors will be subject to the automatic stay, which means that they cannot contact you in any way regarding the debt. A Chapter 13 bankruptcy is beneficial to those who have assets they wish to keep, such as their home, vehicle, or other valuable property which is not exempt in a Chapter 7 Bankruptcy filing. If you are behind on your mortgage or car payments, a Chapter 13 filing can give you some breathing room in which to catch up.
Once your repayment plan is approved by the bankruptcy court, you must begin making your payment to the court within 30 to 45 days.
Benefits of Chapter 13
The benefits of this type of bankruptcy are that your debts will be consolidated into one monthly affordable payment which you will make to the court and that you can temporarily
stop foreclosure and repossession of your property while you cure your delinquent payments over time. Another benefit is that you will not be required to have any direct contact with your creditors; your bankruptcy Trustee will be the one who disburses payment to them during the life of the repayment plan.
Each Chapter 13 repayment plan will vary from person to person. Retain the services of a 25-year veteran in consumer bankruptcy law at the Law Firm of Anthony J. Perano to learn how a Chapter 13 can work for you.