Chapter 13

Chapter 13 is the best remedy if you are behind on your mortgage payments or if your car may be repossessed.  We can cure your mortgage arrearage over up to five years.  We also consolidate all of your other debt – car payments, credit cards, medical bills, personal loans – even taxes and child support.

We prepare a three or five year plan.  You make one payment on your schedule (weekly, bi-weekly or monthly) to the Chapter 13 Trustee.  As far as continuing mortgage payments, those are on the original terms, but the payments that you missed are made up over time at 2% interest.  We pay secured debts like car loans no more than 7.25% interest. Some debts get priority, like taxes and child support.  Unsecured creditors like credit cards, personal loans, check-into-cash and medical bills get zero percent interest.  At the end of your plan the only debt that you should have is the continuing mortgage payment on your house.  You get the titles to your vehicles and most other debts (not student loans) are discharged whether they were paid in full or not.

Eligibility

  • Regular income from employment or another source
  • No discharge in a prior Chapter 7 filed within 4 years or a Chapter 13 filed within 2 years
  • Unsecured debt is less than $383,175.00
  • Secured debt is less than $1,149,525.00

Even if you are not eligible for discharge in Chapter 13, you may want to file to prevent a foreclosure, repossession or garnishment.

Want to know more?  Follow this link to the United States Courts Chaper 13 Bankruptcy Basics page:  United States Courts – Chapter 13 Bankruptcy Basics