A Practical Guide To Chapter 13 Bankruptcy in New Jersey —
When people are struggling to pay their bills, it may seem impossible believe that they can take control of their finances again and find an affordable solution to their debt crisis. For these individuals, a Chapter 13 bankruptcy may be the solution to their debt problems.
Through a Chapter 13 bankruptcy, you can reorganize debts, catch up on past due mortgage payments, prevent repossession of your vehicle, and keep your property. You can take back control of your finances with the assistance provided through a Chapter 13 plan.
How Can A Chapter 13 Bankruptcy Help Me?
A Chapter 13 case, also known as a Wage Earners Plan, is a way to reorganize your debts and keep your property (verses a Chapter 7 bankruptcy case, in which you may lose some of your assets). Debtors who file bankruptcy under Chapter 13 propose a repayment plan as part of their reorganization.
Under the Chapter 13 plan, you make monthly payments to a Chapter 13 trustee who uses this money to pay your debts on a pro-rata basis. This gives you the opportunity to repay some or all of your debts over a 3 to 5-year period while protecting your property from creditors.
Benefits Of Filing A Chapter 13 Bankruptcy Case
Reorganizing your debts under a Chapter 13 plan has several benefits that are not available to Chapter 7 debtors, such as:
- Catching up on past due mortgage payments and car loans over 60 months old so you can keep your home and car;
- Consolidating tax debts into the bankruptcy plan to pay them over a 60 month period;
- Valuing debts, such as your car loan, to repay the value of the car rather than the full loan balance;
- Avoiding fraudulent transfer issues by including an amount equal to the net equity of the transfer in your bankruptcy plan base;
- Paying past due alimony and child support payments to avoid jail time; and,
- Keeping non-exempt assets, rather than potentially having them sold by a Chapter 7 trustee to repay your debts.
Of course, filing a Chapter 13 case has the same effect on creditors as filing a Chapter 7 case — creditors must immediately stop all collection efforts, and they are barred from beginning any new collection efforts during the bankruptcy case. The Chapter 13 case gives you the opportunity to save your assets while reducing your debt burden.
Schedule a Free Bankruptcy Consultation with an Experienced Mount Holly Chapter 13 Bankruptcy Attorney
Ready to learn more about how a Chapter 13 bankruptcy can solve your debt problems? Please contact our office to schedule a free debt consultation today. We want you to know that you are not alone and that there are solutions to your financial problems.
Our staff is here to help. We specialize in bankruptcy, debt consolidation, and credit repair. We offer free, confidential consultations during normal business hours, on weekends, and during evenings as well.
Just call our office at 609-267-5297 or use our convenient online contact form today to set up your appointment.