Chapter 13 Bankruptcy

Chapter 13 Bankruptcy allows people with high income or a lot of assets to pay back all or part of their debts.  Under this chapter, the debtor proposes a repayment plan to make installments to creditors over 3 to 5 years.


There are many advantages in filing a Chapter 13.  Chapter 13 gives debtors the opportunity to save their homes from foreclosures.  If you are behind on your mortgage and are going through a foreclosure, by filing a Chapter 13 you can become current on your mortgage by paying the arrears (the delinquent amount) in the Chapter 13 plan over the 3 to 5 year time.


Another advantage to a Chapter 13 is that you can include secured debts (mortgage for primary residence excluded) and extend the payments over the life of the Chapter 13 plan allowing you to possibly have lower payments.


In a Chapter 13 you can also “strip” the second mortgage or home equity line of credit from your primary residence.  House values are at an all-time low.  If your property does not have any equity you can take advantage of this by filing a Chapter 13 to eliminate any second mortgage on it.  This will result in paying a portion of the second mortgage over the 3 to 5 years allowing the lien to be removed at the conclusion of the bankruptcy.


Call us today for FREE consultation and we will help you determine which option best fits your needs.