Use Chapter 13 Bankruptcy To Reorganize Your Debt
Chapter 13 bankruptcy is also referred to as a “wage earner” bankruptcy, since a requirement to file a Chapter 13 bankruptcy is that you must have some form of regular income. Some types of regular income are employment or self-employment income, child support, or benefits through Social Security, disability, unemployment or retirement.
A Chapter 13 bankruptcy modifies or restructures your debt to make it more affordable and allows you to protect your property. With a Chapter 13 filing, all of your debt can be consolidated into one monthly payment. Are you at the point where you are borrowing from Peter to pay Paul to get to Mary next? With a Chapter 13 bankruptcy, you can stop worrying about who gets paid next. It is time to stop the stress of deciding whom to pay and consolidate your debts into a more affordable monthly payment.
Generally, a Chapter 13 bankruptcy filing assists a debtor in stopping a repossession or foreclosure of property that they wish to keep, despite getting behind on their payments. A Chapter 13 plan lasts three to five years. If the case was filed to stop a foreclosure because the mortgage was behind, then at the end of the case, the mortgage will be current and back on track with the contractual terms of the mortgage agreement. All other debts would be discharged and no longer owed, with the exception of any unpaid student loans.
Often, a Chapter 13 case is filed to assist a person in maintaining their driver’s license or reinstating their driver’s license; this is done by paying court costs or fines or delinquent child support. Sometimes, a Chapter 13 case is filed to stop collection by the IRS and prevent it from continuing to access statutory penalties and interest. Some debts owed to the IRS are dischargeable and some are not. A Chapter 13 case can be filed to split up the claims of the IRS and provide a payment toward that debt that cannot otherwise be discharged. With a Chapter 13 bankruptcy you can stop bank liens, garnishments, repossessions, foreclosure, payday loans and harassing phone calls, among other issues.
You Are Not Alone — She Is Here To Help. Contact Attorney Holly Schumpert Today.
The process for filing a Chapter 13 bankruptcy is a three to five year process. It is important that once you have been granted a discharge you begin reestablishing your credit.
Call today to schedule an appointment for a free consultation with attorney Holly Schumpert to discuss your specific circumstances and options to determine if a Chapter 13 is the best solution to begin your fresh start.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.