People who do not qualify for a Chapter 7 bankruptcy or who have significant assets they wish to protect from liquidation may prefer to file for Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, consumers are allowed to repay debts over a 3 to 5 year debt repayment plan that is authorized by a bankruptcy court judge.
A Chapter 13 bankruptcy is often referred to as a reorganization bankruptcy or a wage earner plan due to the fact that it takes your debts and reorganizes them into a repayment plan that will last 3 to 5 years. During that time period you will make payments to the bankruptcy trustee who will make payments to your creditors.
At Gasparis & Zembillas Attorneys At Law, we understand that filing for Chapter 7 bankruptcy isn’t for everyone. We realize that some people would like to maintain their integrity by paying back their debts. They just need leniency & time to do it.
At Gasparis & Zembillas, Attorneys At Law, we help you create an affordable repayment plan that takes your income and living expenses into consideration. We will come up with an affordable payment plan that allows you to pay only the amount of debt you can afford to pay based on your budget. The goal of the debt repayment plan is for you to succeed with it over that 3 to 5 year period and to emerge debt-free at the end of the plan. Depending on your individual circumstances, you may be required to pay back anywhere from 10% of your debt to 100%.
Starting A Repayment Plan
With a Chapter 13 bankruptcy, the amount of debt you repay is based on your ability to pay. You pay a portion of your debts over a 3 to 5 year period and a portion of your debts may be discharged. In many cases, people pay back very little and receive a discharge of the majority of the unsecured debt. At Gasparis & Zembillas, Attorneys At Law, we will work with your particular circumstances to obtain every advantage available to you to achieve the best result.
If you file a Chapter 13 bankruptcy, you can gain additional time to repay your debts and protect your assets from liquidation. A Chapter 13 bankruptcy may allow you to:
- Stop a home foreclosure
- Stop auto repossession
- Put a halt to a wage garnishment
- Stop creditor harassment
If you are starting to fall behind on your bills or feel you may fall behind in the future due to a change in your economic circumstances, we will protect your rights. We will even guide you on how to restore your credit after the filing is complete.
Chapter 13 may permit you to propose a plan to cure defaults on car loans, home mortgages, student loans and child support. Filing a Chapter 13 bankruptcy can stop a Sheriff’s sale of real estate, rescue a home from foreclosure and permit repayment of the missed mortgage payments over time. You may be able to eliminate second mortgages and combine payments on cars and other secured debt into one affordable monthly payment. Depending on a person or married couple’s circumstances it is possible that some debt can be eliminated without a substantial amount of that debt being repaid. Like a Chapter 7 bankruptcy, filing a Chapter 13 bankruptcy stops wage garnishments as well as other collection activities. In the end, for most Chapter 13 bankruptcy candidates, a discharge eliminates unsecured debts not paid during the term of the Chapter 13 bankruptcy.
If you have questions about whether Chapter 13 bankruptcy is an option for you, the experienced bankruptcy attorneys at Gasparis & Zembillas, Attorneys At Law, would be pleased to meet with you and discuss your situation.
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