CHAPTER 13 CAN HELP YOU SAVE PROPERTY

Chapter 13 is a type of bankruptcy that enables debtors with regular income to discharge most debts without liquidating any personal property. This can be ideal for debtors who have significant equity in real estate or non-exempt assets.

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Statistically, the majority of bankruptcies filed without an attorney fail. Consult with a bankruptcy attorney before filing to improve your chances to obtain confirmation.

FAST FACTS ABOUT CHAPTER 13

Chapter 13 bankruptcy consolidates debt into a 3-5 year repayment plan based on the debtor’s disposable income. Though you may ask how this is different than debt consolidation, the difference is that at the end of the Chapter 13 plan, the remaining debt is discharged.

Chapter 13 offers certain advantages over Chapter 7. One of the biggest benefits of Chapter 13 is that it can enable a debtor to cure delinquent mortgage payments over time through the plan. Because it allows debtors to reschedule secured debts, it also usually reduces the debtor’s overall monthly payments. Debtors also may be able to pay a significant portion of their bankruptcy attorney’s fee through the plan, minimizing their upfront costs. Finally, a Chapter 13 bankruptcy is reflected in your credit report for seven years, while a Chapter 7 remains for ten years.

Although Chapter 13 is usually more involved and more expensive than Chapter 7 bankruptcy, the debtor may be able to pay a significant portion of the attorney’s fees through the bankruptcy plan. This effectively minimizes the upfront and out-of-pocket costs to retain an experienced attorney.

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RELATED PRACTICES

Chapter 7

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