What is Chapter 13 Bankruptcy?

Business people at workChapter 13 bankruptcy, also referred to as a debt consolidation and partial repayment plan, involves consolidating your debts into one reduced payment that is made to the bankruptcy trustee. The chapter 13 plan payment is made monthly over the course of a three to five year payment plan. Upon completion of the repayment period, your dischargeable and unpaid debts are discharged.

Negative Equity

If you have negative equity (owe more than the property is worth) in an automobile, real estate or other secured property, chapter 13 bankruptcy may be the best to deal with your financial distress. Chapter 13 bankruptcy provides significant tools to deal with property that is upside down.

Stop Foreclosure On Your House

If you have fallen behind on your mortgage, but want to keep your house, we can help you! With the power of chapter 13 we can immediately stop foreclosure and through your chapter 13 plan payment, you can bring your past due amount current over a period of time allowing you to keep your home.

Stop Wage Garnishment & Creditors

Filing a chapter 13 bankruptcy will immediately stop foreclosure, stop wage garnishment, stop creditor harassment and get the debt relief you need. If you are struggling to cope with any of these issues, get a free bankruptcy evaluation from us to find out if filing for chapter 13 is right for you.

Chapter 13 has more tools to restructure debts than chapter 7, including:

  • Bringing past due mortgages or auto loans current
  • Restructure underwater property
  • Protect against future medical debts
  • Repay taxes under the protection of bankruptcy
  • Reduce interest rate on auto loans

If you are facing any of these issues, contact us today for a free consultation. Rest assured that with our firm, we will always recommend the chapter that best applies to your individual situation.

Reduce Your Interest Rate On Auto Loan

One of the additional tools of chapter 13 over chapter 7 is the ability to restructure some short-term secured debts. If you have an auto loan, for example, that has a high interest rate, this can save hundreds if not thousands of dollars. The way it works is the auto loan is repaid in the chapter 13 plan. The interest rate paid through the plan is lowered to the Till rate plus a small percentage. This is a HUGE benefit in high interest rate cases. There are limitations as to when this option is viable, so contact us today to see how we can help you restructure your secured debt.