The Chapter 13 Bankruptcy Repayment Plan in New York City

Chapter 13 can provide the most complete financial relief for many consumers in New York City facing temporary financial problems from a medical crisis or other unforeseen expense. If you have fallen behind on your bills but are still earning a regular income a Chapter 13 filing can usually provide the cushion needed to get your financial life back on track. The repayment plan in a Chapter 13 bankruptcy case will allow you to eliminate the toxic unsecured debts that have crept into your life and will protect your valuable assets like your car and home in the process.

Most people considering Chapter 13 have already fallen behind on their bills including their mortgages and car loans. Filing Chapter 13 puts an immediate end to any collection action including foreclosure or repossession allowing debtors a chance to catch up on overdue payments through a 3-5 year repayment plan. The moment a Chapter 13 case is filed debtors are protected by bankruptcy’s “automatic stay” which prevents any and all collection efforts from creditors. Any collection attempts against you can be the basis for a lawsuit against your creditors. In fact many of our clients pay for their Chapter 13 legal costs through the illegal collection attempts against them by their creditors. It’s important to save every collection letter you receive and bring them all with you to your bankruptcy consultation. Letters or other communications in violation of the FDCPA (Fair Debt Collection Practices Act) can be worth up to $1,000 a piece.

When an emergency Chapter 13 bankruptcy case is filed the Bankruptcy Court in New York City will send all of your creditors a letter advising them of your decision to file bankruptcy within about a week of the filing date. The letter will include the date and time of the meeting of creditors as well as the deadlines for any objections your creditors may have. At this point you will work with your attorney to put forward the required “schedules”, listing all of your assets, creditors, income and expenses. You and your attorney will have two weeks to propose a Chapter 13 repayment plan that will be negotiated with the trustee and your creditors. Negotiations however are limited. Many of your assets are simply off the table for your creditors or the trustee to take. If properly used, New York State and Federal exemptions allow you to protect most all of your valuable assets, bank accounts and retirement accounts, but you need an attorney familiar with Chapter 13 Bankruptcy to guide you through this complicated process. Our clients almost never lose their homes, cars or valuable possessions when filing bankruptcy, but it is their responsibility to stick to the agreed upon repayment plan. If you can make every payment for 3-5 years the remaining amount of your unsecured debt will be wiped clean forever. In this way people are able to save their lifestyles while eliminating their bad debts at only pennies on the dollar.

If you are working hard every day but still can’t make your ends meet consult with a bankruptcy attorney. A consultation doesn’t mean you will be forced into filing bankruptcy. Most clients are pleasantly surprised to hear how fast a Chapter 13 bankruptcy can help. 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 10/7/2015.

**** 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. We are a debt relief agency. We help people file for Bankruptcy under the US Bankruptcy Code. Attorney Advertising.