FACING FORECLOSURE? MULTIPLE MORTGAGES?

FACING FORECLOSURE? MULTIPLE MORTGAGES?

Chapter 13 of the bankruptcy code allows for the reorganization of your debts, stop foreclosures, and the removal of secondary liens.

Contact Us Today

10 + 7 =

Chapter 13 Summary

Chapter 13 bankruptcy is intended to help individuals manage their debt by consolidating it into one monthly payment that is paid for a period of between three and five years. Filing for Chapter 13 bankruptcy is also a tactic that can be used to stop foreclosures, get rid of a second mortgage (called lien stripping), and stop repossession.

What Are The Differences Between Chapter 7 & 13 Bankruptcy?

CHAPTER 13 BANKRUPTCY

Type of Bankruptcy
Re-Organization
Who Can File
Individuals / Couples only
How Long to Discharge
Upon completion of all plan payments (Usually 3-5 years)
What Happens to Property
Debtors keep all property but must pay unsecured creditors an amount equal to value of non-exempt assets
Pros
Allows debtors to keep their property and catch up on missed mortgage, car & non-dischargeable priority debt payments
Cons
Must make monthly payments to the trustee for 3 to 5 years. May have to pay back a portion of general unsecured debts

CHAPTER 7 BANKRUPTCY

Type of Bankruptcy
Liquidation
Who Can File
Individuals / Couples and companies
How Long to Discharge
Typically 3 to 5 months
What Happens to Property
Trustee can sell all non-exempt property to pay creditors
Pros
Allows debtors to quickly discharge most debts and get a fresh start
Cons
Trustee can sell non-exempt property. Does not provde a way to catch up on missed payments

Contact Us!

Filing for Chapter 13 bankruptcy can prove to be an extremely challenging feat with the various petition, schedules, and plan paperwork that is involved. One mishap and your bankruptcy case could get dismissed. A dismissal of a bankruptcy case can be detrimental as it impacts the most important feature of bankruptcy, the automatic stay. Depending on the number of times you have filed the length of the protection of an automatic stay may shorten or may no longer be available upon refiling. Let the expertise of Certified Chapter 13 Bankruptcy Paralegal Scott J. Dawson take the worry of a dismissal of your bankruptcy case away.

It usually starts with just one late payment. Then it’s the mortgage, then the car payment, and then, you are laid off from work. Before you know it, the creditors are calling harassing you, demanding payment, threatening legal action against you such as garnishment, foreclosure, or even a bank levy.

You are not alone. Thousands of Americans are behind on their bills and want to pay off their debt, but they need more time. There are numerous advantages to choosing a Chapter 13 bankruptcy over a Chapter 7 Liquidation Bankruptcy. The most significant are the ability to save your home from foreclosure. In a Chapter 13 bankruptcy, a plan is proposed that would provide payments to cure the past due amount of your mortgage over a 3 to 5 year period. However, you must continue to make the regularly scheduled payments on time or the case may be dismissed. Another advantage that a Chapter 13 bankruptcy has over a Chapter 7 is the ability to repay past due taxes and student loans that are most likely not dischargeable in a Chapter 7 bankruptcy.

It is important to note the distinction between a paralegal and an attorney. Paralegals are able to assist in the creation of various legal documents, drafting for different processes, and act in several other vital support roles, but they are not able to provide legal advice. State law requires that all paralegals refrain from offering counsel, advice, and guidance on legal matters. Should you wish to engage someone for those services, you should contact an attorney-at-law.