For individuals who cannot qualify for a Chapter 7, a Chapter 13 bankruptcy is available.
Under a Chapter 13, the debtor pays his or her excess income to the court for a period of three to five years pursuant to a bankruptcy plan. Upon completion of the plan, a discharge is entered.
A Chapter 13 can also be used to eliminate a second mortgage in some cases. Debtors can use a Chapter 13 to catch up on a first mortgage and totally eliminate a second mortgage.
A Chapter 13 is often utilized by to save the family home if a loan modification does not provide relief.
Our Firm has been practicing bankruptcy law for over sixteen years. Contact us to determine if bankruptcy could assist you with your current financial situation. Complete our free case review and we will respond promptly.
Bankruptcy can provide a fresh start to individuals in financial distress. Under current bankruptcy laws, consumers that meet certain income requirements can get relief from most debts, and often keep their assets.
It is more difficult for individuals and families earning over the median income to obtain relief from debts, but options may be available. Proper planning is important to insure that assets are protected. There are two main types of bankruptcy available to most people.
A liquidating, or Chapter 7 bankruptcy, allows individuals to discharge debts while keeping their exempt assets. A Chapter 7 discharge can eliminate credit cards, repossession deficiencies, and stop garnishments. In most circumstances, individuals can keep most of their property and discharge their debts.
Chapter 7 can also eliminate the possibility of a deficiency judgment after a foreclosure.
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