Chapter 13 bankruptcy is designed for people that don’t qualify for Chapter 7, maybe your income is too high or you have assets worth too much money. It’s also designed to allow you 5 years to catch up on your mortgage arrears (the amount you are behind on your mortgage payments).
With a Chapter 13 there is no risk of losing any of your assets. It’s the way to keep everything, pay back a percentage of what you owe (usually small but it depends on your income and other considerations), and leave bankruptcy on solid financial footing.
What are some of the advantages of filing Chapter 13 bankruptcy?
With a Chapter 7 bankruptcy there is the risk, though it doesn’t happen often, that you’ll lose some asset to the trustee. The trustee will sell those assets and use the money to pay your creditors. This doesn’t happen often but it’s a risk. With a Chapter 13 bankruptcy in New York you don’t run the risk of losing assets to the trustee. You are also given a 3 or 5 year period to pay back a percentage of your debt (again, usually a small percentage but it depends on your facts and circumstances).
Rather than having to deal with 15 monthly credit card payments, interest rates, and collection calls, you’ll have one amount to pay to the trustee each month and that’s it! No more phone calls, garnishments, bank levies, or threats. If you make the trustee payment for 36 or 60 months you’re done and you walk away with no credit card or other unsecured debt. Chapter 13 also allows you to slowly but surely catch up on past due mortgage payments.
How is the amount of your monthly trustee payments determined?
Largely by taking your income and subtracting your expenses. So before you file you will know that the trustee payment is something you can afford on paper.
Chapter 13 bankruptcy stops foreclosure and wage garnishments.
Upon filing Chapter 13 bankruptcy the automatic stay goes into immediate effect. Foreclosure, collection efforts, lawsuits, bank levies and wage garnishments all come to a screeching halt. You can breathe again. You won’t have to speak to your creditors again – that becomes our job. It’s truly a new chance at life.
If you are falling behind on your bills, or dealing with an overwhelming amount of credit card or other debts, then Chapter 13 bankruptcy may be right for you. If you are behind on your mortgage, or already facing foreclosure, then Chapter 13 is going to be the answer you have been looking for. Millions of people file bankruptcy each year because they are tired of their life being ruined by money. You deserve to live free of financial stress. Give us a call at 646-736-7539 to find out if Chapter 13 bankruptcy can help solve your financial problems.