A Debt Repayment Plan With Important Protections
Chapter 13 bankruptcy helps you set a repayment plan with your creditors, including mortgage lenders. Filing a Chapter 13 bankruptcy repayment plan can help you consolidate and reduce your personal debts, give you extra time to repay those debts, and keep creditors from harassing you.
At the Law Offices of John E. Mufson, we provide a free initial consultation to answer your questions about Chapter 13 bankruptcy. Attorney John Mufson has filed more than 2,000 bankruptcy cases for clients in Delray Beach and other communities in Palm Beach County, Florida.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this Chapter of bankruptcy protection, individuals propose a repayment plan to make installments to creditors over a three to five year period. Payments are made to a Chapter 13 bankruptcy trustee who pays both unsecured like creditor cards and medical bills, and secured creditors, such as mortgage companies. You may have to pay only a small percentage of your credit card debt in a Chapter 13.
Chapter 13 bankruptcy is used by a people who want to save their homes from foreclosure. By filing under Chapter 13 bankruptcy, you can stop foreclosure proceedings and spread your delinquent mortgage payments over a period of time, up to 60 months.
Eliminate Second Mortgages
If the market value of your house is less than the principal payoff balance of your first mortgage, you may be able to eliminate any second mortgage on your primary residence by filing Chapter 13 bankruptcy. Second mortgages, in most instances will not need to be paid and will be considered an unsecured debt, such as credit card debt.
Reduce Car Payments and Pay Tax Debts
Chapter 13 bankruptcy can also be used to reduce motor vehicle finance payments, if the loan is over 30 months old, and to pay debt owed to the Internal Revenue Service for delinquent taxes over a period of time. If you do not have the ability to make your Chapter 13 payments, you may have the option of converting your case to a Chapter 7 bankruptcy.
Free Lawyer Consultation
To discuss Chapter 13 bankruptcy with attorney John E. Mufson, call 561-272-1003 or fill out the contact form on this Web site. Our law office is located in downtown Delray Beach, across the street from South Palm Beach County Courthouse.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
