Are you are behind on your mortgage and facing foreclosure or at risk of repossession of your vehicle and other valuables? Is your car worth less than what you owe or do you have an astronomical interest rate? If so, Chapter 13 bankruptcy might be right for you. The Law Office of Danielle J. Eliot, P.C. can help you manage your debt and serve as a guide during this stressful time.
Chapter 13 bankruptcy allows you to prepare a three to five year plan of debt repayment to your creditors at a much lower interest rate. Because you will be repaying your debts instead of liquidating them, you will be allowed to keep the majority of your assets, including your home, car, business, and more.
People who file for Chapter 13 bankruptcy must have a reliable source of income in order to make their reduced monthly payments. There is also no limit on the number of times you can file for Chapter 13 bankruptcy, unlike Chapter 7. Typically, people with higher incomes and a fair amount of valuable assets choose to file for Chapter 13 bankruptcy.
The obvious advantage of Chapter 13 bankruptcy is that it allows you to retain most of your assets. Filing also puts an immediate stop to foreclosure proceedings and protects any co-signers from debt collection efforts. Creditors are not allowed to continue harassing you and you will be able to classify each creditor differently in order to allot varying percentages of your monthly income to the most pressing debts. The major disadvantage of the Chapter 13 bankruptcy process is that it takes several years, as opposed to just a few months in a Chapter 7 case.