Chapter 13 Bankruptcy
If you're not eligible to file for bankruptcy under Chapter 7, or if you have valuable assets, Chapter 13 is your best option You can file under Chapter 13 if you have regular income. In general, Chapter 13 bankruptcy requires you to pay a fair percentage of your extra monthly income over a 3 to 5 year period, according to the terms of a repayment plan approved by the court.
Chapter 13 will enable you to save your home. Filing Chapter 13 bankruptcy stops tax levies while providing a 60 month grace period to payoff tax debt.
If you are currently working and have regular income but are ineligible to file under Chapter 7, contact the bankruptcy lawyers at Harlow, Adams & Friedman today to learn more about Chapter 13 bankruptcy.
Can My Unsecured Debt Be Discharged?
Due to changes to the bankruptcy laws passed in October of 2005, Chapter 13 is intended to restructure the debt of someone who has regular income. Unlike Chapter 7 where the court can liquidate assets and people can lose their home, Chapter 13 allows people to keep most, if not all of their possessions. In this sense, it's intended to help people keep their homes and cars. If your mortgage is in arrears, Chapter 13 allows you to bring what you owe current, without losing your home in the process. While more expensive in some sense, Chapter 13 bankruptcy does provide a homestead exemption and an exemption for "tools of the trade" as well. Depending on the amount of your extra monthly income, a portion of your unsecured debt may be discharged.
What if My Mortgage Is Too Much?
Most banks prefer to keep homeowners in their homes. In today's deflated housing market, foreclosure is often more expensive for a bank than modifying a loan or offering a refinancing plan. If you file for bankruptcy and are concerned you will be unable to pay your mortgage, talking to your lender as early as possible can help you avoid problems later. Our attorneys can review your current mortgage, disposal income, and proposed repayment plan and advise you in regard to your best options.
Contact the Chapter 13 Bankruptcy Attorneys at Harlow, Adams & Friedman
Filing for bankruptcy can be the most effective way of getting out from under debt while keeping your home and cars. For more information regarding our practice and how we can help you, contact Chapter 13 bankruptcy attorneys at Harlow, Adams & Friedman today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.