Most individuals who file a Chap 13 bankruptcy case are trying to save their home from foreclosure. It is designed to help people keep their homes and restructure the mortgage debt.
Depending on your annual income, you have to repay all of your missed mortgage payments within 3-5 years on your residence in order to have a successful case. At the same time you must pay your regular monthly payments going forward in time. To do this, you must have regular income of some type; your income does not have to be a weekly paycheck as long as your income can be verified with pay stubs, bank deposits or some other proof.
Chap. 13 stops all foreclosure actions and other legal steps to take away your home from you and your family. All legal action is automatically frozen by the bankruptcy stay. The lawyers at Harlow, Adams & Friedman will work with you to prepare your Chap. 13 plan which describes how you will repay your creditors. You can also use Chap. 13 to protect other valuable assets you may have such as motor vehicles, RV’s, or valuable items in your home.
In general, Chapter 13 bankruptcy requires you to pay a fair percentage of your extra monthly income over a 3 to 5 year period. That amount is determined by an income test, known as the “means test” which calculates the amount of your extra, or disposable, income each month.
We will work closely with you to achieve the best result for you on the means test.
Chap. 13 will also provide you with up to 5 years to pay off tax debt at a much lower interest rate which will save significant money for most people with tax debts.
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.
You will keep your assets while in Chapter 13.
Chap. 13 allows each person to retain their assets. Valuable assets are Not taken away and sold like they could be without bankruptcy protection or as sometimes happens in a Chapter 7 case.
As long as you are able to keep paying your mortgage and the payments in your chap. 13 plan, you will gain valuable time and be able to keep your home, car and other valuable possessions.
You can restructure certain debts and eliminate liens on your property.
If a secured loan has already matured and come due, you can extend the repayment of it for up to 5 years. If creditors have sued and recorded liens on your home or other types of assets, you may be able to strip off those liens. This depends importantly on the value of your home or other asset. You can use laws called exemptions to protect the equity you may have in types of property. In Conn. our “tools of the trade” exemption is unlimited in amount and has been used to fully protect many different types of property from creditors.
What if My Mortgage Is Too Much?
If you own a multi-family home you may be able to restructure the entire mortgage loan by stripping off the debt on the property which exceeds the value of the property. This is a very valuable method of saving people a large amount of money in the right circumstances. 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 a very effective way of relieving the constant pressure of debt while you keep your home and cars. For more information regarding bankruptcy 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.