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Chapter 13 Bankruptcy

It is sometimes difficult to understand the differences between bankruptcy filings, and which type of bankruptcy might be available to you at a given point in time. A Chapter 13 bankruptcy is often referred to as a wage-earners plan or reorganization. It is often used to stop the foreclosure of one's home or the repossession of a secured asset such as your car. The Chapter 13 bankruptcy filing would enable you to reorganize your finances and to repay any monthly payment arrears that you might have with regard to your mortgage or your car loan.

Even in circumstances where one's mortgage and car loan payments are up-to-date, a Chapter 13 bankruptcy filing might be required if your income is too high compared to the median income in the jurisdiction, taking into account the number of people that reside in your household. Under either a Chapter 7 or Chapter 13 bankruptcy filing, you would likely keep your home and car, but under a Chapter 13, you would also be able to keep your rental properties and various items of personal property that might otherwise be subject to sale in a Chapter 7 case. Attorney Glenn L. Kantor will work with you to determine the appropriate type of bankruptcy filing for your particular circumstances and will advise you as to which assets you will be entitled to keep.

New York Chapter 13 Bankruptcy Explained

A Chapter 13 bankruptcy filing is a reorganization of your financial situation. Glenn will work with you and the bankruptcy court to create an agreement to repay your creditors a certain amount of money during a specific period of time. In order to enter into a Chapter 13 bankruptcy, a monthly repayment plan is proposed to court. The plan usually requires the payment of all monthly disposable income and continues for a period of 36 to 60 months. If the court believes that you have presented the plan in good faith and that the proposed plan can work, the plan will be confirmed by the court. The first payment is made within thirty days after filing the plan with the court. All payments are made to the Chapter 13 Trustee, who then distributes them to your creditors.

Eligibility to File Chapter 13 Bankruptcy

In order to file a Chapter 13 bankruptcy, you must have a regular income and owe less than $387,000 in unsecured debt and less than $1,039,000 in secured debt. While past-due mortgage payments and secured debts such as car loans need to be paid in full if you choose to retain the house and the car, unsecured debts such as credit card bills, medical bills and personal loans are often discharged with only a small percentage actually being paid by you as a part of the Chapter 13 Bankruptcy payment plan.

Schedule a Free Consultation

To find out if a Chapter 13 Bankruptcy filing may be the right option for you, contact Suffolk County, NY Bankruptcy attorney Glenn L. Kantor today.


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What is a Chapter 7 bankruptcy?

Chapter 7 Bankruptcy is a "liquidation" bankruptcy.

What is a Chapter 13 bankruptcy?

Under a Chapter 13 bankruptcy filing, you will be working out a payment plan with your creditors.


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