When you are struggling to meet your obligations and see bankruptcy as your best option for getting a fresh financial start, there may be a number of reasons why you would rather file for protection under Chapter 13, which allows you to restructure debts and pay them over a three-to-five year period. You may have assets that you don’t want to lose in a Chapter 7 bankruptcy sale. A Chapter 13 proceeding will almost always involve more time and effort than a Chapter 7 case, as you will have to work out specific repayment arrangements with all your creditors, but you can often complete the process without too much difficulty.
Chapter 13 Can Be Quick and Easy
If you have a lot of secured debt, a Chapter 13 may be time-consuming and complex. As a part of the Chapter 13 process, your attorney will work directly with your creditors and with the bankruptcy court to put together a repayment plan that is acceptable to those creditors and that is affordable for you. Obviously, the more creditors you have, the more time and energy must be spent to determine how much you can pay each one on a monthly basis.
It is also essential that you put a plan in place with which you can comply. During the repayment period, you will be entitled to the protection of the automatic stay, so creditors cannot call, write or take legal action against you. However, if you fail to make payments as promised, the protection afforded by the bankruptcy laws can be revoked.
Having a reliable job can also facilitate the approval of a reorganization plan. If your creditors have confidence that you will continue to be gainfully employed, they will be more likely to agree to repayment terms that extend three to five years.
In Chapter 13, it is especially important that you have reputable and knowledgeable legal counsel who can identify and solve any problems that may arise. Chapter 13 is a financial “swiss army knife” with many tools available. But putting those tools into the right hands can make all the difference.
Contact Neuner & Ventura, LLP
Let us help you take back control of your life! We understand the stress, anxiety and confusion that can be associated with a potential bankruptcy filing. We offer a free initial consultation to every new potential bankruptcy client. (We do, however, reserve the right to charge a fee to review any work done by another attorney). For an appointment, call Neuner & Ventura at (856) 596-2828 or send us an e-mail. Evening and weekend appointments are available upon request
Representing Clients across South Jersey