Get Debt Under Control With Chapter 13
Chapter 13 bankruptcy gives individuals an opportunity to consolidate and restructure debts in order to repay their debt in affordable payments. This type of bankruptcy benefits individuals who have a consistent source of income. Further, individuals who want to retain assets that may otherwise be liquidated by Chapter 7 bankruptcy should consider a Chapter 13.
Under Chapter 13, which is often called a reorganization bankruptcy, consumers repay part or all of their debts by following a budget plan that is overseen by a court-appointed bankruptcy trustee. Payments are typically stretched out over 36 to 60 months.
Paying Off Debts In Chapter 13
Most debtors end up paying a substantially reduced amount of debt toward their unsecured debt in Chapter 13. A number of factors determine the amount that is repaid and how much is paid each month, including the client’s assets, types and amounts of debt, their disposable income as determined by the appropriate state’s means test.
At Planer & Sherlock P.A. in Gastonia, North Carolina, we are experienced in assisting individuals navigate through the complex Chapter 13 process. If Chapter 13 is the best option for you, we will develop a repayment plan that ensures that you maximize the amount you save through exemptions and debt restructuring.
Advantages of a Chapter 13 bankruptcy include:
- Possible reduction of the amount of vehicle loans to the value of the vehicle via a “cram-down”
- No interest accrues on credit card and finance company debt after the filing
- No interest or penalties accrue on tax debt after the filing
- Potential elimination of second or third mortgages
- Possible discharge of debts that would not be dischargeable under Chapter 7 (for example, fraud judgments)
We also assist individuals in modifying Chapter 13 payment plans if changing financial circumstances prevent them from making monthly payments. You may be able to convert to Chapter 7 if you pass the Chapter 7 means test and have not received a Chapter 7 discharge within the previous eight years.
Is Chapter 13 Right For You?
Our Gastonia Chapter 13 bankruptcy attorney can review your situation during a free consultation and recommend the best steps to take. Call 704-864-0235 or use our contact form to schedule a meeting with trusted North Carolina bankruptcy lawyer.
In addition to a variety of legal services we offer, we also qualify as a federally designated debt relief agency and are able to help people file for bankruptcy relief under the Bankruptcy Code.