Chapter 13 Filing

Chapter 13 Filing
Chapter 13 Bankruptcy
is often called a reorganization bankruptcy. People who file Chapter 13 Bankruptcy often do so to benefit from the many advantages of saving their homes, reducing their mortgages, and restructuring mortgages on multiple properties so that they become more affordable. A Chapter 13 Bankruptcy usually involves a repayment plan that is spread out over an average of 5 years, so that people can keep their assets and make their debt situation more manageable. In a Chapter 13, many types of debt can still be liquidated, while simultaneously allowing for the restructuring of mortgage or automobile debt. Due to the multitude of options available, a Chapter 13 allows consumers much more flexibility and provides for many beneficial options. In addition, individuals who simply cannot qualify for a Chapter 7 due to too much income also often file chapter 13.

The benefits to filing a Chapter 13 for homeowners are considerable.  The benefits are especially attractive to people with multiple properties or investment properties.  If you are a homeowner or property investor trying to save your home or investment properties in a Chapter 13 Bankruptcy, there are many tools available. For example, you may be able to strip off (eliminate) a second or third mortgage or other lien on the home, cram down a first mortgage on an investment property and pay what the property is worth instead of what you owe, as well as catch up on missed payments by spreading them out over 5 years to bring your mortgage current.

While there are no income limitations to file a Chapter 13 Bankruptcy, there are limits to how much-secured debt you can have and still qualify for a Chapter 13 Bankruptcy. It is important that you consult a knowledgeable and experienced lawyer to discuss the many benefits of filing a Chapter 13 Bankruptcy.

Schedule your 30 minute consultation with our bankruptcy attorney today!