Chapter 13 Bankruptcy Attorney in New City, New York
Chapter 13 bankruptcy allows an individual or a family to keep assets and adjust payments to better suit their specific financial situation. Chapter 13 is mostly for those who have assets, income, or a home valued above the average family in their county of residence. An individual or family that is eligible for Chapter 13 bankruptcy should be able to keep their assets in exchange for a plan to repay debts over a longer period of time. This is a powerful tool to help those who are struggling right their ships and get back on track. Koplen Law has decades of experience helping clients through all bankruptcy matters. Having a knowledgeable attorney with a compassionate hand is imperative when facing an uncertain future. If you are interested in knowing more about Chapter 13 or need legal advice on the matter, contact Koplen Law for a consultation.
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is called a wage earner’s plan. This helps those with regular income develop a plan to repay all or some of their debt. Under Chapter 13, the debtor or debtors propose a plan to repay debts in installments over three to five years. This allows debtors to catch up on mortgage payments and other debt while stopping creditors from pursuing the said debt.
Debts that can be eliminated
This Chapter allows debtors to pay what they can to creditors based on their income and expenses. For most unsecured debts, a debtor will pay some percentage over the plan. Once completed, these unsecured debts will be eliminated. Some unsecured debts include:
- Personal loans
- Medical bills
- Old car loans
- Credit cards
Debts that cannot be eliminated
There are numerous debts that cannot be eliminated under the Bankruptcy Code, called non-dischargeable debt. These include:
- Most taxes
- Student loans
- Child support
- Spousal maintenance
- Criminal court compensation or restitution
- Debts incurred by fraud
The Automatic Stay
When you file for bankruptcy, the Automatic Stay goes into effect. This bars creditors from pursuing debt, including harassing calls, threatening letters, lawsuits, wage garnishing, foreclosures, and repossession. This allows a debtor the time to create and implement the repayment plan to be filed with the Bankruptcy Court for approval.
The repayment plan provides the path forward. The debtor and attorney will develop a plan that fits their needs, but also works to satisfy creditors and the Bankruptcy Court. The plan will detail a schedule of payments to be made to a trustee who will distribute the money over a period of time, either 3 or 5 years. Creditors can develop their own plan as well. The court will decide which plan works best. Once a plan is approved, payments will start soon after. If no plans are approved, the court may decide to convert the case to Chapter 7.
Contact an experienced Chapter 13 bankruptcy attorney
Koplen Law is an experienced law firm located in Rockland County. Our firm is ready to help you through tough financial situations, guiding you through the process of bankruptcy and on to a better life. If you are in a tough financial spot and believe that bankruptcy may be an option, our firm is ready to assist. Contact Koplen Law for a consultation to discuss your legal matter.