Chapter 13 Bankuptcy
Shevitz Law Firm
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hapter 13 is a type of bankruptcy that allows individuals to repay some or all of their debts over a three to five year period with either zero or substantially reduced interest.
What is Chapter 13 Bankruptcy?
It can be used to become current on missed mortgage payments, lease payments, and even car payments.
Chapter 13 bankruptcy is only for individuals and does not apply to business entities although it is possible for individuals that operate sole proprietorships or even corporations to file bankruptcy to eliminate or repay individual debts.
Individuals must set forth a plan of reorganization which is typically reviewed by the Chapter 13 Trustee and the impacted creditors prior to approval.
What are the benefits of Chapter 13 Bankruptcy?
Allows a person to repay their debt over the course of 3 to 5 years.
It can be used to stop a foreclosure sale.
It can be used to help a person get current with car payments.
It can be used to pay back less than the amount owed on a vehicle, if the vehicle is worth less than what is currently owed.
It can be used to reduce the interest rate of loans to a market rate of interest.
It can be used to remove judgment liens.
It can be used to stop wage garnishment.
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