Chapter 13 Bankruptcy
Chapter 13 is known as a reorganization plan because it requires you to pay off some of your past-due and current debts over a period of 3 to 5 years. One of the more attractive aspects of Chapter 13 is that it allows you to keep valuable property, such as your home or car, which would otherwise be at risk for being lost in a Chapter 7 bankruptcy. Some considerations for filing Chapter 13 are:
You own your home and are at risk of losing your home because of money problems and as a result, you are behind on your mortgage payments.
You are behind on debt payments, but can catch up if given some time to pay your creditors;
You have valuable property that is not exempt, e.g., investment property, expensive cars (with little or no debt), etc.
Would like to strip the second lien on your house that is completely underwater. (For instance, you have two loans on your residence. The first lien balance exceeds the value of your home. The second is considered completely unsecure. This scenario would allow you to ask the Chapter 13 bankruptcy court to “strip” the second lien.)
As Ms. Garrett’s former client’s already know, Ms. Garrett does not recommend a debtor file bankruptcy Chapter 7 or Chapter 13 until the debtor has made an informed decision—taking into account both the pros AND cons. It cannot be over-emphasize how important it is for a debtor to make this preliminary determination. (Many an upset debtor has called Ms. Garrett AFTER they have filed bankruptcy only to inform Ms. Garrett that filing bankruptcy did not solve their financial problems. Please, don’t be one of these types of debtors!) Below are some recommendations to help assist you with making an informed decision.
Contact Us for a 20-minute free consultation or to set up a paid 2-hour consultation.
Contact an attorney in your area at the National Association of Consumer Bankruptcy Attorneys
Purchase a book on the subject. Here are some good books designed for the consumer: