For assistance filing a Chapter 13 Bankruptcy, choose the Law Offices Of Edwin M. Adeson in Glens Falls, NY.
Reorganization through Chapter 13
A Chapter 13 Bankruptcy is a reorganization process where you repay back at least a portion of your debt or all of it, depending on your assets and gross income. This type of bankruptcy is extremely useful because it immediately stops a foreclosure action or sale and stops and prevents a vehicle from being repossessed, which is called an automatic stay.
Additionally, a Chapter 13 Bankruptcy is useful to those who are unable to file a Chapter 7 because they make too much money annually (over the means test) or they fear they will lose an asset that is not exempt or protected in a Chapter 7. Common examples of assets include rental properties or expensive vehicles that have significant equity, motorcycles, vacant land, second homes, and time-shares that are free and clear.
Filing a Chapter 13
Once you file the Chapter 13, you repay back all arrearages owed on the real property or the vehicle over a period of 60 months, and you can resume making the regular monthly payments immediately. This allows someone who is significantly behind on their mortgage or vehicle payments to force the creditor to accept a payment plan over five years, rather than being forced to come up with the entire balance or lose the secured item.
Someone filing a Chapter 13 may file it at 9:59 a.m. with a pending foreclosure sale at 10:00 a.m., and the foreclosure sale will be canceled. Additionally, Chapter 13 bankruptcies are used to pay back real estate taxes over five years and immediately stop tax foreclosure sales.