Considering Chapter 13 Bankruptcy?
Talk to the Morris County Bankruptcy Lawyers at Ast & Schmidt, P.C.
Chapter 13 bankruptcy allows debtors to develop a plan to repay all, or part, of their existing debt in installments over a three to five year period. Often referred to as a “wage earner’s plan”, it is only available to individuals with a regular stream of income. The income that qualifies is extremely broad. It is also often preferred over Chapter 7 because it allows debtors to retain their homes and other assets if the values exceed the allowable exemptions. It is also often viewed more favorably by creditors. Additionally, it remains on credit reports for only seven years, while Chapter 7 bankruptcy remains for ten years.
When Should I Consider a Chapter 13 Bankruptcy?
Chapter 13 is also often preferred in situations where the debtor:
- Does not qualify for Chapter 7 bankruptcy or filed for Chapter 7 bankruptcy previously within the past eight years
- Owns his or her own home and wishes to protect it from claims of creditors
- Has assets that exceed allowable exemptions
- Is delinquent on mortgage or car payments and wants to have time to cure the arrears
- Has mortgage debt that exceeds the value of the property
- Owes taxes or student loans
- Payoff credit cards with the interest frozen as of the date of filing
In the 2005 revisions to the bankruptcy law, Congress added a provision called the “Means Test”. The Bankruptcy Means Test determines eligibility to file bankruptcy. In Chapter 13, the Means Test determines, in part, the minimum amount of repayment to the general unsecured creditors.
Contact a Bankruptcy Lawyer Now for a Free Consultation
If you feel that bankruptcy might be an option for you, then you should consult with a Morris County Chapter 13 bankruptcy lawyer. He or she will then ensure you explored all available options. The attorneys at Ast & Schmidt, P.C. are qualified bankruptcy attorneys who assist clients in Morris County and surrounding areas. Please contact a Morris County Chapter 13 bankruptcy attorney today for assistance with your bankruptcy situation.