What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows for debt reorganization and provides specialized relief you cannot obtain anywhere else in the law. For instance, you can stop foreclosure of your home and force the lender to accept payments to cure the default. The lender must cooperate.
You might have heard about companies who file for reorganization, and this is a similar undertaking. There are many advantages and disadvantages to this type of bankruptcy, and we can help navigate through the information to find the result that is best for you.
There is Hope
In addition to stopping foreclosure, many times you can lower a car payment and, as unbelievable as it sounds, can sometimes eliminate completely a second mortgage on your residential home. Chapter 13 plans range between three to five years in duration, after which most, if not all, of your unpaid balances will be discharged. You will make your payments directly to the trustee instead of your creditors.
A Chapter 13 plan may be looked at as a form of debt consolidation, but allows a person to achieve much more than simply consolidating his or her unsecured debt such as credit cards and personal loans.
What Does This All Mean?
When you have a secure job, and feel you can pull yourself out of the debt, without declaring straight bankruptcy and risk losing assets, then this could be the option for you. Let John A. Mclaughlin and our team help you find the solution that works for you.