Often called as a consolidation bankruptcy, Chapter 13 is available to individuals and couples seeking to restructure debt. Filers under this chapter can avoid foreclosures and by using a chapter 13 repayment plan to catch up on delinquent mortgages, reduce debt on cars and other secured loans to the value of the collateral, eliminate second mortgages in many instances, restructure or eliminate tax and other debts. What filers are able to reduce or eliminate depends on their income, the value of their assets, whether they have filed previous bankruptcy cases, and the amount of secured debt.
Chapter 13 cases involve the filing of a bankruptcy plan, which is a roadmap for a repayment plan over a 36 to 60 month period. The amount to be paid into the plan for this time period is based on what the filer is able to pay, and often leads to a lower monthly payment that what the filer was paying before they filed bankruptcy, through the reduction in principal, lowering or interest rates, and the elimination of credit cards an other unsecured debt.
Fees in a chapter 13 case are also paid over time through the bankruptcy plan, allowing the case to be filed for very little down. Our firm takes pride in our success rate in chapter 13 cases, which is the result of careful attention to all aspects of the case both before and during the process.