BANKRUPTCY

Under Chapter 13 Bankruptcy, individuals who cannot discharge their debts or want to keep their homes but have fallen behind in their mortgage payments or car payments can consolidate their overdue payments and repay their pre-filing arrears in monthly payments for a period of up to 5 years (60 months). The amount of the monthly payment and the time period varies for each individual based upon a number of factors including: The monthly income of the individual An individual’s monthly expenses The amount of the debt and whether the debt is in the nature of a secured debt (i.e. home mortgage, auto loan) or unsecured debt (i.e. credit cards, personal loans, bank loans which are not guaranteed by a government agency). 

After our initial consultation and a review of your financial situation, we will advise you as to whether you qualify for a Chapter 13 Bankruptcy.

If we mutually agree that Chapter 13 Bankruptcy is your best alternative, we will prepare a plan which will provide a monthly payment covering a period from 36 months to a maximum of 60 months.  This one monthly payment will be paid to the Bankruptcy Court and at the conclusion of the time period, assuming all plan payments have been made, you will receive a discharge.

The payments will be made to a Bankruptcy Trustee who is authorized by the Court to receive your payments and distribute the plan payment to the creditors.

Common Advantages of Chapter 13 Bankruptcy: You can keep your property while spreading out time to pay past due accounts. You may have up to 5 years to catch up on delinquent accounts.