People who are not eligible to file for Chapter 7 bankruptcy may still be able to file for bankruptcy under the terms of Chapter 13. Unlike Chapter 7, debt is restructured according to a repayment plan that typically requires you to pay a certain portion of what you owe over a period of three to five years.
Often referred to as "repayment bankruptcy" or "wage earner bankruptcy," Chapter 13 allows you to combine pre-existing debt on credit cards, medical bills and certain kinds of loans into a single repayment plan.
At the law office of Levine & Levine, our attorney helps draft your repayment plan, taking into consideration your current financial situation and needs. If you are currently employed and facing foreclosure on your home, contact the Chapter 13 bankruptcy lawyer at Levine & Levine today to schedule an appointment to discuss your case.
Since Chapter 13 involves a reorganization of your debt, it may be possible to keep your home and avoid foreclosure. Under Chapter 13, you can include past-due mortgage payments in your repayment plan, spreading what you owe over its duration.
However, in order to avoid foreclosure, you must continue to make monthly payments on your mortgage. In this sense, Chapter 13 allows you to catch up on pre-existing debt, but it does not allow you to modify your mortgage loan or reduce your current monthly mortgage payment.
Under Section 341 of the Bankruptcy Code, people filing for bankruptcy are required to attend a meeting with their creditors. You will be placed under oath and your creditors will be given the opportunity to ask you questions. While we cannot appear for you in your place, we can accompany you to the 341 meeting. We can advise and confer with you should any issues arise that require legal advice. Our attorney will also accompany you to the confirmation hearing when creditors are given the opportunity to raise objections to your proposed repayment plan.
As in Chapter 7 bankruptcy, once you file for Chapter 13 bankruptcy, an automatic stay will be placed on any collection or foreclosure actions on the part of your creditors. As a result, collection agencies, banks and creditors must stop calling and instead, they must go through our office.
Put an end to the stress and anxiety associated with spiraling debt —contact Levine & Levine today to schedule an appointment at our Florham Park office. Learn how to regain your financial footing with our help.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.