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Chapter 13 Bankruptcy – Part 1 | Fall River

Joseph Botelho | 661 Views | 03/10/2015

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a portion of the bankruptcy code which allows the debtor to repay some or all the debts owed to creditors through the use of repayment plan. The main benefit of Chapter 13 bankruptcy over Chapter 7 bankruptcy is the protection of assets and property of the individual. Chapter 13 bankruptcy allows the debtor to retain their property throughout the bankruptcy proceeding, unlike Chapter 7, which may require that debtor liquidate non-exempt assets.

Debt Consolidation

Chapter 13 bankruptcy is an excellent tool used to consolidate a person’s unsecured debt, get caught up with secured debts such as car loans or your mortgage, when you are months behind on making payments. Chapter 13 also allows you to negotiate with your creditors to obtain lower interest rates and better terms on your loan or mortgage, which will allow you to become debt free sooner.  Chapter 13 can be the answer for many debtors who have assets that they wish not to lose, but on financial trouble that they cannot escape without assistance.

Chapter 13 requires that the individual have steady income, and that the debtor repay all their secured debt, such as a car loan or mortgage, and a portion of their unsecured debt such as credit cards and medical bills. A debtor will work alongside their bankruptcy attorney to determine the repayment plan, in which a certain amount of you future income goes to paying off your debts.

Foreclosures

Chapter 13 is an invaluable tool when it comes to a home and foreclosure. This form of bankruptcy can stop your foreclosure sale at any time, as long as filed prior to the foreclosure sale date. It also allows you the time to catch up on your back payments you have missed. So if you’re in foreclosure and fear of losing your home, Chapter 13 may be just the answer for you. In Chapter 13, you will be making all your normal monthly payments on your secured debt such as your car loan or home mortgage, and give them three to five years to repay the remainder of the delinquent payments.

Mortgage Modification

We may also use Chapter 13 to obtain a mortgage modification field, in which the bankruptcy court forces the lender to act in good faith while determining if the debtor qualifies for mortgage modification. This means that the bank cannot play games and continually asking you for the same documents over and over again, saying they never received documents, or simply denying you for no reason.

In Chapter 13, the bank must act in good faith and must demonstrate to the bankruptcy court how they reached their conclusions about your mortgage modification. You may also negotiate with the banks for better terms on a car loan in a Chapter 13 bankruptcy. If for some reason you fell on financial hard times, such as the loss of a job or an illness, and you need time to get back on your feet and catch up on your bills, Chapter 13 can possibly be the best solution for you.

Always seek the counsel of an experienced bankruptcy attorney to determine what the best course of action is for you as far as debt settlement, Chapter 7 bankruptcy, a mortgage modification, or Chapter 13 bankruptcy.  Botelho and Associates also offers credit repair services which help you get your credit score above 700 in as little as (2) years after bankruptcy.

Botelho & Associates

Most bankruptcy attorneys will simply file your bankruptcy and send you on your way. Here at the law offices of Botelho and Associates, we are dedicated not only to helping remove your debt, but also helping you get where you really deserve to be in life. Most people do not realize how important their credit is, and in doing so, we help them with that also. For more information on bankruptcy and scheduling a free bankruptcy consultation with an experienced bankruptcy attorney, please visit our website at www.massachusettslawyeronline.com or call toll free at 1-888-269-0688.

By: Joseph Botelho

Chapter 13 Bankruptcy – Part 1 | Fall River

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a portion of the bankruptcy code which allows the debtor to repay some or all the debts owed to creditors through the use of repayment plan. The main benefit of Chapter 13 bankruptcy over Chapter 7 bankruptcy is the protection of assets and property of the individual. Chapter 13 bankruptcy allows the debtor to retain their property throughout the bankruptcy proceeding, unlike Chapter 7, which may require that debtor liquidate non-exempt assets.

Debt Consolidation

Chapter 13 bankruptcy is an excellent tool used to consolidate a person’s unsecured debt, get caught up with secured debts such as car loans or your mortgage, when you are months behind on making payments. Chapter 13 also allows you to negotiate with your creditors to obtain lower interest rates and better terms on your loan or mortgage, which will allow you to become debt free sooner.  Chapter 13 can be the answer for many debtors who have assets that they wish not to lose, but on financial trouble that they cannot escape without assistance.

Chapter 13 requires that the individual have steady income, and that the debtor repay all their secured debt, such as a car loan or mortgage, and a portion of their unsecured debt such as credit cards and medical bills. A debtor will work alongside their bankruptcy attorney to determine the repayment plan, in which a certain amount of you future income goes to paying off your debts.

Foreclosures

Chapter 13 is an invaluable tool when it comes to a home and foreclosure. This form of bankruptcy can stop your foreclosure sale at any time, as long as filed prior to the foreclosure sale date. It also allows you the time to catch up on your back payments you have missed. So if you’re in foreclosure and fear of losing your home, Chapter 13 may be just the answer for you. In Chapter 13, you will be making all your normal monthly payments on your secured debt such as your car loan or home mortgage, and give them three to five years to repay the remainder of the delinquent payments.

Mortgage Modification

We may also use Chapter 13 to obtain a mortgage modification field, in which the bankruptcy court forces the lender to act in good faith while determining if the debtor qualifies for mortgage modification. This means that the bank cannot play games and continually asking you for the same documents over and over again, saying they never received documents, or simply denying you for no reason.

In Chapter 13, the bank must act in good faith and must demonstrate to the bankruptcy court how they reached their conclusions about your mortgage modification. You may also negotiate with the banks for better terms on a car loan in a Chapter 13 bankruptcy. If for some reason you fell on financial hard times, such as the loss of a job or an illness, and you need time to get back on your feet and catch up on your bills, Chapter 13 can possibly be the best solution for you.

Always seek the counsel of an experienced bankruptcy attorney to determine what the best course of action is for you as far as debt settlement, Chapter 7 bankruptcy, a mortgage modification, or Chapter 13 bankruptcy.  Botelho and Associates also offers credit repair services which help you get your credit score above 700 in as little as (2) years after bankruptcy.

Botelho & Associates

Most bankruptcy attorneys will simply file your bankruptcy and send you on your way. Here at the law offices of Botelho and Associates, we are dedicated not only to helping remove your debt, but also helping you get where you really deserve to be in life. Most people do not realize how important their credit is, and in doing so, we help them with that also. For more information on bankruptcy and scheduling a free bankruptcy consultation with an experienced bankruptcy attorney, please visit our website at www.massachusettslawyeronline.com or call toll free at 1-888-269-0688.

By: Joseph Botelho