What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a legal process under which a person whose bills and debts are greater than his or her income reorganizes the debts and pays them off over time.
In a chapter 13 case you file a ‘‘plan’’ showing how you will pay off some of your past-due and current debts over three to five years. In a chapter 13 case, the consumer is allowed to keep his or her valuable property (like a home or car) which might otherwise be lost. In most cases, these plan payments will be at least as much as your regular monthly payments on your mortgage or car loan, with some extra payment to get caught up on the amount you have fallen behind.
Chapter 13 bankruptcy is generally most appropriate for consumers who:
- Own a home and are in danger of losing it to foreclosure
- Are behind on debt payments, but can catch up if given some time
- Have valuable property which is not exempt, but can afford to pay creditors from your income over time
If you have questions or concerns about filing for Chapter 13 bankruptcy, we urge you to contact The Law Offices of Robert J. Nahoum, P.C. today by calling 845-232-0202.
This Law Offices of Robert J. Nahoum, P.C. is a Debt Relief Agency. We assist individuals to become debt free through Bankruptcy.