Chapter 13 Bankruptcy

A Chapter 13 bankruptcy, or a “reorganization” bankruptcy, provides a mechanism for families to face their financial obligations through affordable monthly payments over the course of 3 to 5 years, while keeping their property. A Chapter 13 will allow you to address the default on your mortgage payments, your car loans, tax debts, and any otherwise priority debts through a reorganization plan. You may be completely relieved of liability for a substantial portion of your debts.

Think of a Chapter 13 as an interest-free forced debt consolidation plan, where you make an affordable monthly payment to the Court trustee who then disperses that payment to your creditors. Your creditors do not have a choice in how much they receive, as that is dictated by your repayment plan and the Court.

Our Attorneys can help you determine if you qualify and whether or not Chapter 7 bankruptcy is the best option for your particular situation. Contact us to schedule a confidential and free consultation. Call: [8773017005]

Benefits of a Chapter 13 bankruptcy
If you are facing a repossession or foreclosure due to missed payments on your car or mortgage, once filed a Chapter 13 will permanently stop the legal proceedings as long as you stay current on your future payments and make your timely Chapter 13 plan payments.

Additionally, one of the biggest advantages of filing and completing a Chapter 13 bankruptcy is that it provides you with the option of filing a separate motion to remove all junior liens against your real property. This process is called a “lien strip.” A lien strip is a legal remedy that provides that, if the value of your home is below the amount owed on your first mortgage, you may be able to strip the security from your second and/or third mortgages. This means that, upon discharge of your Chapter 13 bankruptcy, you will no longer have the junior liens on your home, and the property will vest in you free and clear of the former junior liens.

By way of illustration: If you have a first deed of trust for $400,000, and a second deed of trust for $150,000, but your current property value is $350,000, upon completion of your Chapter 13 reorganization plan, we will be able to eliminate your $150,000 debt!

Have More Questions about Chapter 13 Bankruptcy? Call [8773017005] to schedule a free consultation with an attorney at the Stone Haven Law Group to get a better understanding of your options.

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