Chapter 13 bankruptcy is also knows as individual reorganization.  It enables individuals with regular income to develop a plan to repay part or all their debts through the chapter 13 plan.  Similar to chapter 7, it ceases all collection efforts from creditors via the automatic stay under 11 U.S.C. §362. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

 

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure.  By filing a chapter 13 debtors can stop foreclosure proceedings and may cure delinquent mortgage payments over the duration of the chapter 13 plan.   Debtors can also save their vehicles from repossession and cure delinquent vehicle payments via their chapter 13 plan.

 

Chapter 13 plans are also used avoid "underwater" junior mortgages or other liens, pay back taxes over time, or partially repay general unsecured debt (i.e. credit cards).

 

The bankruptcy attorneys at the Law Offices of Anthony B. Vigil, APC are well versed and highly experienced in Chapter 13 bankruptcy filings.  Contact us today to schedule a free consultation to review your financial situation and receive a recommendation from an attorney for a solution to your financial troubles.

 

 

 

 

 

“..chapter 13 debtors can stop foreclosure proceedings and may cure delinquent mortgage payments in the chapter 13 plan.”