Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is a reorganization plan. If you are ineligible to file a Chapter 7 bankruptcy due to earning more than the median income limits under the law, you may alternatively file a Chapter 13 bankruptcy. In addition, if you are facing a foreclosure of your home or a repossession of your automobile, a Chapter 13 bankruptcy will allow you to restructure your payments and keep your possessions.
Chapter 13 reorganization plans last between 3 and 5 years. During that time, you are required to make a Court approved monthly payment to a trustee assigned to your case who then distributes payments to your creditors. The law requires that you pay your best efforts. As such, Attorney Troy D. Green will discuss a monthly budget with you to determine how much you can afford to pay. Making all your payments provides the following benefits:
- Eliminating unsecured debts (credit cards, medical bills, personal loans, judgments, etc.) by repaying a percentage of what is owed depending on how much you can afford
- Satisfying missed mortgage payments at 0% interest and without incurring late fees
- Satisfying property tax debt
- Satisfying income tax debt
- Modifying automobile loans
- Eliminating second and third mortgages
As you can see, a Chapter 13 bankruptcy allows you to consolidate all of your debts into one simple payment. At the same time, it allows you to stop a foreclosure and/or repossession. If you are seeking financial peace and are interested in discussing your Chapter 13 options at a free consultation, call today to schedule an appointment!