If you have fallen behind on a mortgage or car payment, a Chapter 13 bankruptcy could be your best option to avoid foreclosure or repossession and secure a more manageable payment plan. With over a decade of experience guiding people in the Charlotte, North Carolina, area through bankruptcy, the Law Offices of Beth B. Carter can help you determine if a Chapter 13 bankruptcy may work for you.
How Does a Chapter 13 Bankruptcy Work?
If your income is too high that filing a Chapter 7 bankruptcy may raise a presumption of abuse, or if you have assets that may be liquidated in a Chapter 7 that you would like to protect, a Chapter 13 bankruptcy may be a way to protect your assets and still obtain much needed debt relief. A Chapter 13 may also offer benefits for tax relief.
In a Chapter 13, you are setting up a payment plan over a span of three to five years with a Chapter 13 trustee. This plan will be designed to fit what is manageable for your financial situation while complying with the requirements under the Bankruptcy Code. You will have the opportunity to catch up on any back payments that may have built up over time for your mortgage or car payments, as well as reduce payments for credit cards and other unsecured debts.
Chapter 13 vs. Chapter 7
Individuals who owe priority creditors such as the IRS or that owe domestic support obligations may be able to structure repayment easiest through a Chapter 13 bankruptcy. Current income is taken into consideration as well as monthly ordinary living expenses in proposing a repayment amount. Provided the monthly proposed chapter 13 bankruptcy plan payment is feasible within one's budget and the plan complies with the requirements under Title 11, the plan will most likely be confirmed and the creditors held at bay.
Discuss Whether Chapter 13 Is Right for You With a Skilled Bankruptcy Attorney
The Law Offices of Beth B. Carter offer a free initial consultation to answer your questions about Chapter 13 bankruptcy and other debt relief options. To schedule your meeting at either the Denver or Huntersville offices, call 704-966-8028 or contact the office online.