Chapter 13 Bankruptcy Can Help You Restructure And Repay Debt
Once you get into debt, it can be very hard to manage on your own. Many people struggling with debt have had the thought that they could catch up if only someone would give them a break or more reasonable terms. If this sounds familiar to you, Chapter 13 bankruptcy might be a good option to consider.
In Allentown and surrounding areas of Pennsylvania, The Law Offices of Everett Cook, P.C., is the firm to contact for experienced help with your bankruptcy matter. You’ll work directly with Everett Cook, a lawyer with more than 20 years of experience in bankruptcy law. He provides the support, honest feedback and problem-solving attitude that clients need during this difficult time.
A Basic Overview Of Chapter 13 Reorganization Bankruptcy
Unlike Chapter 7, which discharges most debts, Chapter 13 focuses on restructuring debt so that it can be manageably repaid. Together with your bankruptcy attorney, you will negotiate with creditors and come up with a repayment plan lasting between three and five years.
The repayment plan is based on what you can reasonably pay each month after accounting for necessary fixed costs. You make one monthly payment to the bankruptcy trustee, who then distributes funds to your creditors. As long as you make regular payments for the duration of your plan, any remaining debt can typically be discharged once the repayment period has ended.
The Many Benefits Associated With Chapter 13
There are a number of benefits associated with Chapter 13 that make it an attractive option. For example:
- It is easier to qualify for Chapter 13 than Chapter 7, and you don’t need to pass a means test.
- You have a better chance of keeping your home or vehicle as long as you can become current and stay current on mortgage and loan payments.
- A Chapter 13 filing stays on your credit report for just seven years, compared with 10 years for a Chapter 7.
- You can use Chapter 13 to pay off debts that wouldn’t be dischargeable in Chapter 7, including student loans.
One of the major and immediate benefits of filing for either Chapter 13 or Chapter 7 is the automatic stay. As soon as you file, the court issues an automatic stay that halts all collection activities and communications from creditors. This can be a huge relief for anyone who has felt the stress of creditor harassment. Although the stay isn’t permanent, it provides a much-needed opportunity for debtors to slow down, think clearly and come up with a long-term solution.
Discover How A Skilled Attorney Can Help You – Contact The Firm Today
From its office in Allentown, The Law Offices of Everett Cook serves clients in Bethlehem, Easton, Philadelphia and surrounding areas. You can schedule an initial consultation by calling 610-673-0907, or by submitting an online contact form.
Everett Cook is a debt relief agent. He helps people file for bankruptcy relief under the Bankruptcy Code.