Chapter 13 of the Bankruptcy
A Chapter 13 bankruptcy provides individuals with "regular income" (a term which, according to legislative history, includes income from Social Security and welfare) an alternative to "straight bankruptcy". Under Chapter 13, the individual may retain his or her assets, including non-exempt assets which otherwise would be liquidated and distributed to creditors in a Chapter 7 case. Instead, he/she makes periodic payments to creditors under a three to five year payment plan approved by the court. However, a creditor can receive no less under a Chapter 13 met with under a Chapter 7 liquidation.
Chapter 13 has several additional aspects which might make it more advantageous for debtor than a Chapter 7 proceeding. First, real estate mortgages in default may be cured. Second, certain alterations may be made in the repayment terms of other secured obligations, such as lowering the monthly payment and extending the payout period.
How can Chapter 13 Bankruptcy help you?
- Stop Foreclosure and Sheriff Sales
Is your home currently in foreclosure or have you received notice of an impending sheriff's sale? Filing a Chapter 13 bankruptcy will stop the foreclosure or sheriff's sale any time prior to the sale of the house. The Chapter 13 filing will allow you to pay your mortgage arrears through the bankruptcy directly to your mortgage company.
- Stop Creditor Harassment
Are creditors calling you at home and at work? Are they contacting your friends and family members? Put an end to your creditor harassment by speaking with the Law Office of Jonathan Stone. Once you retain our office, you will be able to refer your creditors to us. The creditor harassment will stop immediately. Under some circumstances, this creditor harassment may be in violation of the Fair Debt Collection Practices Act (FDCPA) and you may have cause for further action.
- Stop Repossession
Are you behind on your automobile payments? Are you in fear that your car is near repossession? A chapter 13 bankruptcy can help save your car and stop the finance company from moving forward with repossession. Contact the Law Office of Jonathan Stone today to help you consolidate your past due payments as well as consolidate the balance on your car loan into the Chapter 13 bankruptcy. You will make one payment to the trustee per month to cover the arrears and pay the finance company the regular payment. At this point, the car company will not be able to move forward with the repossession. Under some circumstances, the Law Office of Jonathan Stone may even be able to recover your car after repossession and consolidate the balance of your car loan.
- Prevent Utility Shutoffs
Worrying about utility shutoffs? Filing a Chapter 13 bankruptcy can stop creditors from shutting off your utility service. Contact the Law Office of Jonathan Stone today to prevent a disruptive utility shutoff before it is too late.
