Chapter 13 Bankruptcy is also known as a reorganization bankruptcy. A Chapter 13 plan provides for a reorganization or consolidation of debt through reduced affordable payments budgeted to income and living expenses, often resulting in very significant debt reductions in exchange for just a small monthly payment. This type of bankruptcy works well if you have non-exempt property that they want to keep, since you are allowed to retain most property if your plan meets certain guidelines.
A Chapter 13 bankruptcy will also immediately stop foreclosure proceedings and allow you 36 months (60 months in some circumstances) to catch up your delinquent home and auto payments.
If the filing of a Chapter 13 bankruptcy is deemed to be appropriate in your situation, you and I will develop a plan to be filed with the court telling the creditors how much they will receive. This plan will be developed based upon your budget and the property you are keeping. In many cases, the bankruptcy court will approve a plan that provides for payments that are only a percentage of your total unsecured debts and that are payable over a period of time up to five years. A Chapter 13 bankruptcy may also allow you to re-structure your car loans so that you repay only what the car is currently worth, not the entire balance claimed by the creditor.
Filing a Chapter 13 Bankruptcy will put you on track towards debt elimination and re-establishing credit quickly. In most cases, you will have one hearing with a Trustee, for which Jill McDonald will be present with you. Jill will attend for you all other hearings required.
We are here to help you! If you are considering filing a chapter 13, you are invited to make an appointment for a free consultation with Bankruptcy Attorney Jill McDonald. Contact us at Info@JillMcDonald.com or call us at (727) 231-4300.