If you are considering filing for bankruptcy, you should understand how a Chapter 13 bankruptcy works, as well as the differences between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy.
A Chapter 13 bankruptcy provides many clients with flexibility that a Chapter 7 bankruptcy cannot provide. For example, if you’re behind on a house or vehicle payment, Chapter 13 can stop a foreclosure or repossession and allow you to catch up your payments over a 3- to 5-year period.
When applying for bankruptcy, you may be ineligible for a Chapter 7 because your income is too high. You also could lose some of your assets. None of your property is taken in a Chapter 13, and you can pay down debts that can’t be wiped out in a Chapter 7, such as taxes, child support, and student loans.
The stress and anxiety that you may be dealing with can come to an end by filing for a Chapter 13 bankruptcy. After filing for bankruptcy, creditor harassment will halt, and you will no longer have to fear being sued or having your wages garnished.
Advantages of Chapter 13 Bankruptcy
By filing a Chapter 13 bankruptcy, you may be able to accomplish everything you had hoped to accomplish with a Chapter 7, but with some additional benefits:
- Repayment of your consolidated debts over three, four, or five years (depending on your qualifications)
- Avoiding foreclosure of your house and avoiding car repossession by getting caught up on your payments
- Eliminating a second mortgage on a home if it is valued at less than the first mortgage
- Wiping out interest and penalties on past-due taxes owed
- No upfront attorney fees, as the court pays our fees
Schedule a Consultation with a Bankruptcy Attorney
At the Law Offices of Bryan Yaldou, our mission is to provide responsive, supportive legal services to clients throughout the Downriver area. Our Brownstown bankruptcy attorneys can help you determine whether bankruptcy is right for you and will walk you through each step of the process.
If you’re trying to find the best bankruptcy attorney for you, we encourage you to read more about why clients choose us. You may also contact us for a free consultation to determine if we’re the best fit for you.