Experienced Chapter 13 Bankruptcy Attorneys Serving the Hudson Valley
The bankruptcy attorneys at Rusk, Wadlin, Heppner & Martuscello, LLP have helped people throughout the Hudson Valley use Chapter 13 bankruptcy to take control of debt and attain financial stability. Learn more about filing for Chapter 13 here.
Reorganize Your Debts with Chapter 13
Chapter 13 bankruptcy enables you to reorganize your debts and negotiate new, more manageable payment terms with your creditors. It’s a good option if you have a steady income but you still cannot pay your monthly bills, or if you need to save your home from foreclosure. Chapter 13 may also be a good option if you have obligations that cannot be discharged under Chapter 7, such as child support, student loans, or priority taxes.
Chapter 13 Procedure
Chapter 13 bankruptcy entitles you to “Individual Debt Adjustment,” which involves working out a payment plan with your creditors based on your available income. Once your payment plan period begins, creditors cannot charge interest on your debts, and all payments go straight to the principal balance of each debt. This way, you can pay off your actual debts as quickly as possible, rather than simply making interest payments.
The Chapter 13 payment plan usually expires in three to five years, depending on its specific terms. When you complete your payment plan, any remaining unsecured debts are discharged, so long as you are current on your child support and/or spousal support obligations and you have completed a budget counseling course with an agency approved by the United States Trustee.
Keep Your Assets with Chapter 13
Depending on your individual circumstances, Chapter 13 debt adjustment offers many advantages, especially if you have real and personal property that you don’t want to lose. Unlike Chapter 7, Chapter 13 does not require you to sell off assets to pay your debts; rather, you pay what is owed each month according to your payment plan, and work toward fulfilling your priority debt obligations.
If you are facing foreclosure, Chapter 13 allows you to catch up on past due mortgage payments as part of your payment plan, so that you can keep your home and resume normal monthly mortgage payments once you successfully complete the bankruptcy process.
Contact Us about Filing for Chapter 13 Bankruptcy
If you are considering Chapter 13 bankruptcy, contact Rusk, Wadlin, Heppner & Martuscello, LLP for advice and guidance through the entire bankruptcy process. We represent clients throughout Ulster County and the Hudson Valley.