chapter 13 bankruptcy
Chapter 13 bankruptcy offers a solution for a wide variety of problems:
Foreclosure: Chapter 13 bankruptcy can stop a foreclosure, even on the eve of a sale. It gives you up to 5 years to catch up on your mortgage arrears, allowing you to keep your house. It also provides the opportunity to apply for a loan modification, which can lower your monthly mortgage payment by lowering your interest rate, and even lowering your principal balance owed.
Eviction: Chapter 13 bankruptcy can stop an eviction and give you up to 5 years to catch up on your rental arrears. It is important to file the bankruptcy before your landlord has a judgment against you, so if an eviction proceeding has begun, you must act fast.
Car Repossession: Chapter 13 bankruptcy can stop repossession and give you up to 5 years to catch up on car payment arrears. Even better, if you have owned the car for over 910 days, Chapter 13 bankruptcy allows you to payoff the car in full over a 5 year period, at the current value of the car rather than the full balance of your loan.
Student Loans: Chapter 13 bankruptcy can stop garnishments or bank account levies, and give you some breathing room. It allows you to pay what you can afford each month toward your student loans, and holds your creditors at bay for up to 5 years.
Condo Fees: Chapter 13 bankruptcy can stop a foreclosure for condo maintenance fee arrears. It gives you up to 5 years to catch up on the condo fee arrears, allowing you to keep your condo.
Credit Card Debt: Chapter 13 bankruptcy can stop your creditors from harassing you and give you a chance to payback all or some of your unsecured debts,. It allows you to enter into a plan for up to 5 years to pay only what you can afford each month, with no interest charges, lawsuits, garnishments, or harassing phone calls. At the end of your plan, any debt that has not been repaid is discharged (or wiped out) and you get a fresh start. Often debtors pay back only a small percentage of their debts in a Chapter 13 bankruptcy.
If you think a Chapter 13 bankruptcy can help you, contact us today for a free consultation. If none of these situations apply to you, then perhaps a different type of bankruptcy would be a better solution for you. For more information, please visit our bankruptcy basics page.