Due to recent changes in the court rules we are allowed to teleconference and file your case without ever leaving your home
Call Us : 508-655-3013
Due to recent changes in the court rules we are allowed to teleconference and file your case without ever leaving your home
Call Us : 508-655-3013
Chapter 13 bankruptcy, which is also known as a wage earner’s plan, lets people who have a steady income make a plan to pay back some or all of their debts over three to five years. This choice is especially helpful for people who have fallen behind on secured debts like car or mortgage payments but still want to keep their home. By filing for Chapter 13, you can stop the foreclosure process and make payments that are past due over time, which will bring you back into line with your creditors’ original agreement.
It may also be better to file for Chapter 13 instead of Chapter 7 if you want to protect valuable non-exempt property. Chapter 7 could require you to sell some of your assets. Also, it’s helpful for people whose income is higher than the limit for Chapter 7 because Chapter 13 doesn’t have the same income limits. Chapter 13 bankruptcy can also help you deal with tax debts and child support payments by letting you catch up on them over the course of the repayment plan.
Stops Foreclosure Proceedings: Filing for Chapter 13 immediately stops foreclosure proceedings, allowing you to catch up on missed mortgage payments with a structured repayment plan. Moreover, this legal protection protects your home while you work to meet your obligations.
Debt Consolidation: Chapter 13 combines your debts into a single, manageable monthly payment. As a result, this simplifies your financial obligations and frequently results in better repayment terms, reducing the stress of dealing with multiple creditors.
Prevents Asset Repossession: If you are behind on car payments or other secured debts, Chapter 13 can protect your assets from repossession. Moreover, the repayment plan allows you to make up missed payments over time while maintaining ownership of your valuable property.
Stops Wage Garnishments and Collection Calls: When you file for Chapter 13, the court issues an automatic stay, which prevents wage garnishments and harassing collection calls. This provides immediate relief and peace of mind while you work on reorganizing your finances.
Allows Asset Retention: Unlike Chapter 7, which requires the liquidation of non-exempt assets, Chapter 13 allows you to keep your property. As long as you follow the repayment plan, your assets are safe from creditors.
Discharges Certain Debts: Some of your remaining unsecured debts may be discharged once your Chapter 13 plan is complete. This discharge relieves you of personal liability for specific dischargeable debts, giving you a new financial start.
One of the primary benefits of Chapter 13 bankruptcy is that it protects your home from foreclosure. When you file, an automatic stay takes effect, halting foreclosure proceedings and allowing you to include missed mortgage payments in your repayment plan. This means you can pay off arrears over three to five years while continuing to make regular mortgage payments.
Moreover, it’s important to note that, while Chapter 13 can help you manage past-due payments, you must still make your current mortgage payments on time during the bankruptcy process. Failure to do so may result in the lender seeking court permission to proceed with the foreclosure. Furthermore, if the value of your home has dropped significantly, Chapter 13 may allow for the removal of wholly unsecured junior liens, effectively treating them as unsecured debt that can be discharged at the end of the plan.
However, if the equity in your home exceeds the allowable exemption limits, you may be required to pay more to unsecured creditors under your repayment plan. It is critical to consult with a knowledgeable Chapter 13 bankruptcy attorney to determine how your specific situation will be affected and to devise a strategy that will best protect your home and finances.
Getting through the complexities of Chapter 13 bankruptcy requires experienced legal counsel. At our Chapter 13 bankruptcy law firm, our dedicated team is available to help you every step of the way. Moreover, we understand the difficulties you are experiencing and are committed to assisting you in achieving financial stability.
Our attorneys will assess your financial situation and devise a personalized strategy to meet your requirements. Furthermore, we want to help you regain control of your finances and protect your assets. Our extensive experience in Massachusetts bankruptcy law allows us to confidently guide you through the process.
Contact us today to set up a free consultation with our Auburn Chapter 13 bankruptcy lawyers. During this meeting, we’ll talk about your options and give you the support you need during this difficult time. A single phone call will kick off your new beginning.