Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy instead of Chapter 7 will provide more flexible solutions to your debt issues. A Chapter 13 discharge will halt collection activities, such as foreclosures, wage garnishments, repossessions, and lawsuits. You may reorganize your debts to make them more manageable and:
- Reduce monthly payments on medical bills, personal loans, and credit card debt
- Catch up on mortgage and car payments you’ve missed
- Stop interest accumulation on certain debts
- Pay off recent income taxes and other nondischargeable debts within three to five years
Here’s some basic information on Chapter 13 bankruptcy to determine whether it’s right for your specific situation.
- Keep All Your Property – Both chapters allow you to protect or exempt property provided under the state’s exemption statutes. With Chapter 13 bankruptcy, however, you get to keep all your property (including property considered nonexempt under Chapter 7) through a repayment plan.
- Save Your House or Vehicle – Filing for Chapter 13 will instantly stop repossession or foreclosure activities. But you must make up your missed payments within three to five years to keep your property.
- Take Advantage of a Cramdown to Lower Payments for a Secured Loan – Other than residential property, you can lower how much you need to pay on a secured loan by cramming down a hefty balance to a collateral property’s value, with the property securing your debt.
- Discharge a Second Mortgage – If your house is underwater, meaning that you owe more than it is worth, filing for Chapter 13 may help you discharge a third or second mortgage. But your home’s value must be less than the amount you owe on your primary mortgage before discharging the second mortgage.
- Get Protected From Creditors As You Pay Off Nondischargeable Debt – You can force creditors to let you pay off nondischargeable debt within three to five years without worrying about receiving a bank levy or having their wages garnished.
- File for Another Bankruptcy – If you were granted a Chapter 7 discharge in the past eight years but want to file for bankruptcy again, Chapter 13 bankruptcy may be an option for you, depending on your specific circumstances.
Get In Touch With a Top Port St. Lucie Chapter 13 Bankruptcy Attorney Now
Filing for Chapter 13 bankruptcy is a complex legal process that usually requires the skill and experience of a trusted attorney. If you have any questions or concerns about filing for bankruptcy or a pending bankruptcy case, don’t hesitate to reach out to our Port St. Lucie Chapter 13 bankruptcy attorney, Brian McMahon, today.
Call our office at 772-228-6701 or send us a message online to set up your free case evaluation with our Port St. Lucie Chapter 13 bankruptcy attorney.