Using Chapter 13 Bankruptcy To Consolidate Your Debt
Chapter 13 bankruptcy is an interest-free debt repayment plan through which you consolidate your debts over a three to five-year period. The creditors cannot collect from you during the term of the plan. Debts that are generally consolidated in a Chapter 13 bankruptcy are mortgage arrears, balances on vehicle loans, student loans, credit card debts and other unsecured debts.
One important thing to remember about Chapter 13 bankruptcy is that you must be working or have a consistent source of income for your repayment plan to be approved by the court. Not only must you be able to pay for your monthly living expenses, but you must also be able to make a payment to the court to consolidate your debts. If you become unable to make your monthly payments in a Chapter 13 bankruptcy due to decreased income or increased expenses, it may be possible to convert to a Chapter 7 bankruptcy.
How Chapter 13 Bankruptcy May Help Protect Your Property And Car
Chapter 13 bankruptcy will stop a foreclosure any time prior to a sheriff’s foreclosure sale and allow you to repay your mortgage arrears. You will still be obligated to make all future payments directly to the mortgage company, but they may not proceed with the foreclosure. Call us now because once the sheriff sells your home, there is nothing we can do to stop the sale. Or in a Chapter 7 bankruptcy, you may eliminate most forms of unsecured debt such as credit cards medical bills and personal loans.
Our law firm can use Chapter 13 bankruptcy to stop a finance company from repossessing your vehicle. The past due payments, along with the outstanding balance on the car loan, will be consolidated into Chapter 13 bankruptcy. The finance company cannot repossess your car, and you will not have to make a payment directly to the finance company. In some instances, we can even get your car back if it was recently repossessed.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.