Chapter 13 Bankruptcy Lawyers in Burlington County, NJ
How Chapter 13 Works
If you can pay off some of your debts, Chapter 13 allows you to set up a payment plan for anywhere from three to five years. Chapter 13 bankruptcy is a good option for you if you have assets you don’t want to lose – like a home and car – or if you have a regular income but cannot handle the debt you have accumulated. The payment plan you organize with your McDowell Posternock Apell & Detrick, PC attorney will allow you to pay off your debts in a more tolerable fashion and get you on the road to financial recovery.
Benefits of Chapter 13 bankruptcy include:
- Putting an end to wage garnishments
- Freezing home foreclosures and vehicle repossessions
- Developing a manageable monthly payment for all your debt
- Earning a better way to handle any student or tax loan debt
- If your house’s market value is less than what you owe on your mortgage you can possibly eliminate second liens such as home equity loans
As with Chapter 7 bankruptcy, there are certain debts that cannot be discharged in Chapter 13 bankruptcy, including:
- Tax debt less than three years old
- Government and court-related fines
- Child and spousal support
Steps Involved in Chapter 13 Bankruptcy
The process for Chapter 13 bankruptcy has some similarities to a Chapter 7 bankruptcy, but your case will last longer since you are repaying your debts over a span of 3 to 5 years. Here is what you can expect during the process:
- Provide your lawyer with all pertinent financial documents. Your McDowell Posternock Apell & Detrick, PC attorney will draft the legal documents and prepare you for the bankruptcy proceedings. Upon filing, an automatic stay begins immediately, and creditors will no longer be able to contact you.
- You will take a mandatory consumer credit counseling course that can be completed from home. You will later need to complete a financial management course, which you attorney will prep you for.
- After filing for bankruptcy, you will develop a 3 to 5 year repayment plan with the assistance of your McDowell Posternock Apell & Detrick, PC attorney. The plan will set forth how you plan on repaying debts, including: mortgage, motor vehicle, credit card, taxes, and child and spousal support.
- You will meet with the chapter 13 trustee in a creditors meeting. During the meeting, your trustee will ask you questions about your debts, income, and assets; they will review your repayment plan, confirming it meets bankruptcy law criteria. Any of your creditors are permitted to attend this meeting, but few creditors choose to do so.
- Once your plan is approved, you will make payments according to this plan for 3 to 5 years. After your repayments are complete, your bankruptcy case will then be discharged.
Why should I consider filing for Chapter 13 bankruptcy?
- Get a professional opinion from an expert about the best way to handle your debts.
- Learn how Chapter 13 bankruptcy can help you reorganize your debts and set up a manageable payment plan.
- Stop wage garnishments and freeze foreclosures or repossessions.
- Organize the best possible repayment plan, ensuring its approval in court.
- Receive guidance through the entire bankruptcy process and professional representation in court.
- Be provided with assistance rebuilding your credit.
Seek bankruptcy advice with a free phone consultation
Are you considering Chapter 13 bankruptcy as a solution to your growing financial struggles and debt? Rest assured that the knowledgeable South Jersey bankruptcy attorneys at McDowell Posternock Apell & Detrick, PC will guide you through the entire process and thoroughly explain your options. Call us today or fill out our contact form to schedule a free phone consultation.