Chapter 13 Bankruptcy Attorneys Serving Plymouth, Massachusetts
There are many layers to the bankruptcy process. The most important thing is finding the right plan that works for you and your unique set of circumstances. For some, Chapter 13 bankruptcy just may be the way out of their debt problems. Chapter 13 is commonly referred to as “reorganization” because the process involves creating a three-to-five-year plan to restore your financial health. For a closer look, someone in Chapter 13 will make regular monthly payments to a trustee to address all of their creditors that are owed money. The good news is, in many cases, this payment is less than the amount owed. Rather than seeking out a different chapter of bankruptcy solutions, Chapter 13 is a viable option for individuals and families that may not qualify for Chapter 7 bankruptcy. This can be for a number of reasons, but it mostly deals with them exceeding the median income limits set by the bankruptcy statute.
How Chapter 13 Can Help You Back On Track
Rather than give up your entire livelihood to address your outstanding debts, there is always a better way. Here at Benner & Weinkauf, we work to get our clients back on track and out of the red. When it comes to Chapter 13, we’ve found that it holds many advantages to its beneficiaries. Among other things, it has the power to stop foreclosure and vehicle repossessions, thus providing you with the chance to keep a roof over your head and the opportunity to retain the mode of transportation that allows you to live your life freely. By utilizing this unique opportunity, you’ll be afforded precious time to catch up on missed mortgage payments and be given the chance to stop harmful IRS and DOR levies.
Objectively, the benefits are extensive. By filing a Chapter 13, you’ll be able to pay back income taxes owed to the IRS or the Department of Revenue. In certain circumstances, you’ll even be able to remove second mortgages and home equity lines. As if that wasn’t enough, certain stipulations will even allow you to modify car loans. As for your properties, it will allow you to strip judicial liens from your real estate. All this adds up to being able to take control of your life again and keep the things that matter most.
The Next Steps
When you file, the next steps will involve a court-appointed trustee being issued to work on your case. This specialized professional will collect your monthly plan payments and distribute the funds to your creditors according to the reorganization plan filed by your attorney. The good news is that you’ll be able to know what is happening every step of the way, finally bringing you back into the conversation after escaping the harassment and badgering of creditors. Most importantly, this repayment to your creditors can be much less than the total amount owed, with no tax consequences and no more sleepless nights.
At the end of the day, Chapter 13 bankruptcy stops foreclosure the moment a case is filed. It allows you to resume making monthly mortgage payments to the lender while catching up on missed payments in fixed monthly payments over three to five years. As long as you meet your obligations under the plan, your creditors cannot foreclose on your home and they will no longer have the means to make your life more difficult than it already is. Here at Benner & Weinkauf, P.C., we work tirelessly to get our clients the financial stability they deserve. If you face foreclosure, wage garnishment, or are simply tired of harassment by creditors, call us today. We’ll be standing by to help.