Chapter 13 Bankruptcy
Chapter 13 Bankruptcy involves working with the courts to consolidate, restructure, and possibly reduce your debts. Afterward, you will make one monthly payment to a court-appointed trustee who will take care of paying your creditors.
The main benefit of filing Chapter 13 Bankruptcy over other types is the ability for debtors to save their home from Foreclosure. It will put a stop to foreclosure, repossession, lawsuits, and creditor harassment. For the duration of your repayment plan, typically 3-5 years, you'll have the breathing room and protection that allow you to eliminate your debt.
Chapter 13 may be right for those who:
- Have incurred debt as a result of a temporary financial setback, (i.e. job loss, injury or illness).
- Have substantial assets such as real estate, automobiles, business assets that they want to retain.
- Have a source of steady income with which to make payments to the trustee.
Only a qualified bankruptcy lawyer can determine if your financial situation warrants filing Bankruptcy. Consulting with a bankruptcy attorney should be the first step for anyone considering filing Chapter 13 Bankruptcy to get relief from overwhelming debt.
ยป Learn about Business Bankruptcy
Return to Bankruptcy Page