Chapter 13

Chapter 13 Bankruptcy

  • What is a Chapter 13 Bankruptcy? It is a debt reorganization which in most cases allows you to pay back only a fraction of your debt while discharging the rest. It is different from credit counseling and debt consolidation because unlike those, Chapter 13 forces creditors to participate and it has no tax penalties or consequences.
  • My house is in foreclosure, can I save it? With a Chapter 13 Bankruptcy you can stop your mortgage company from foreclosing as long as you file before the sheriff’s sale date. You then repay the mortgage arrearage over the next several years rather than having to come up with a lump some all at once.
  • My car is about to be repossessed, can I save it? In a Chapter 13 case you can stop the creditor from repossessing your vehicle, get the vehicle back for you and in some cases we can lower the amount you owe on the vehicle so you can afford the payments.