Chapter 13 Bankruptcy Attorney New York City
If a debtor chooses to file Chapter 13 bankruptcy they will propose a 3-5 year repayment plan designed to pay off some or all of the debts owed to their creditors through their future earnings. Also known as the “Wage Earners” plan Chapter 13 is a court monitored and approved repayment schedule available to individuals and married couples with enough income to cover the monthly payments. If the debtor can meet every payment for 3-5 years the remaining dischargeable debt will be forgiven at the end of the plan. Chapter 13 can save a home by immediately halting a foreclosure, can help a debtor catch up on home or car payments, and can even help a debtor catch up on back taxes. Valuable property can be protected, and after the plan is completed the majority of bad debts are discharged having usually been paid off at only pennies on the dollar.
The amount that will need to be repaid through the Chapter 13 plan will depend primarily upon the debtor’s disposable income as determined by the Bankruptcy Means Test. If a debtor chooses Chapter 13 their general unsecured creditors are entitled to receive at least as much as they would have if the debtor filed Chapter 7 instead. Chapter 13 is not for every debtor in New York City, but can offer the most complete form of bankruptcy protection for people underwater on their bills that also have at least some form of income. Working with the right Chapter 13 Bankruptcy attorney in New York City is essential however, and not every bankruptcy attorney is interested in filing Chapter 13 cases.
Once a Chapter 13 case is filed creditors must immediately cease any and all collection efforts against the debtor for the duration of the bankruptcy case. If a debtor is married and has a joint debt with their spouse, their spouse will also be shielded from creditors by the “co-debtor stay” offered through Chapter 13. In other words if you file, they won’t be able to simply start harassing your husband or wife about the past due mortgage payments instead of you.
The decision to file Chapter 13 over a Chapter 7 will depend on many factors and should only be made with the advice of a qualified bankruptcy attorney familiar with Chapter 13 cases in New York City. Bankruptcy is the only guaranteed way to eliminate your bad debt forever, and the only debt relief option that carries the full power of the law. For the dedicated individual Chapter 13 can eliminate all toxic debt and allow them to keep valuable possessions and secured assets.
If you are overwhelmed with your debts and have creditors harassing you day and night do yourself a favor and consult with a bankruptcy attorney. A consultation doesn’t mean you will be forced into filing bankruptcy. Most clients are pleasantly surprised to hear what a Chapter 13 bankruptcy can do for their overall financial well being. If you live in New York City contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free consultation today. We only practice bankruptcy law and maintain a 99% Chapter 7 bankruptcy discharge record in New York City as of 8/31/16.
**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.