Chapter 13 Bankruptcy
What is Chapter 13 Bankruptcy?
A Chapter 13 bankruptcy is a debt repayment or restructuring plan where a Debtor pays a portion of his or her unsecured debt back and, depending on the Debtor’s intent, payments on secured debt over a period of three to five years. A Debtor in Chapter 13 bankruptcy must have a regular income and be able to show that he or she can support a monthly payment to the bankruptcy trustee who will distribute the payments to creditors. A Chapter 13 can pull a home out of foreclosure, prevent repossession of a vehicle and may also assist in paying down Federal, State or City tax debt. A Chapter 13 is also available to retain property that may not be protected in a Chapter 7 bankruptcy. As with a Chapter 7 bankruptcy, all collection must cease upon the filing of a Chapter 13. Although not the traditional form of bankruptcy that people are familiar, this bankruptcy can nonetheless be a solution to your financial burdens. Experienced attorneys will prepare a bankruptcy repayment plan for the Debtor’s benefit, advocate for this plan to the bankruptcy trustee and ensure that the plan will give the Debtor the fresh start he or she is seeking. Begin relieving your stress and burdens today! Contact Kasunic & Weeks attorneys to begin the process of becoming debt free and prosperous.