Chapter 13 Bankruptcy Attorneys in Morristown
Serving Morris County and Beyond
Chapter 13 is a form of personal bankruptcy available to individuals. This form of bankruptcy, also known as reorganization bankruptcy, is an option for debtors who have the means to pay down their debts through a repayment plan. In addition to other requirements, filers must be current on their tax filings for the past four years.
If your level of income prevents you from filing a Chapter 7 petition, you may choose to pursue debt relief by filing for Chapter 13 bankruptcy. You could also choose this option if you have assets that are not protected under Chapter 7 exemptions.
What Is Chapter 13?
When you file a Chapter 13 bankruptcy, a bankruptcy court will set up a repayment plan, in which you will pay off your debt over 3-5 years. Your remaining debts will be discharged upon the completion of your repayment plan. In addition to allowing you to pay outstanding debt through an installment plan, Chapter 13 bankruptcy allows for the payment of delinquent income taxes, child support, and alimony. This form of bankruptcy protects co-signers on accounts from having responsibility for the debt.
In short, Chapter 13 bankruptcy allows you to manage payments to unsecured debt, such as credit cards and medical expenses, while still enabling you to make payments on other types of overdue debts, like mortgage loans, auto loans, income tax, and domestic support.
Honesty and Integrity: Get the Facts from Our Team
Our Chapter 13 bankruptcy lawyers can help you understand the secured and unsecured debt limits for Chapter 13 filings. We can also develop a reasonable payment plan to submit to the court that leaves you with the resources you need to make ends meet.
We also feel it's extremely important for our clients to know about the prevalence of myths surrounding bankruptcy. One of the first things we do when we meet with new clients is to go over these misconceptions and clear them up.
The following is a list of corrections to some of the most common myths people encounter when researching Chapter 7 and Chapter 13 bankruptcy options:
- Filing a bankruptcy does not permanently ruin your credit. You can learn how to rebuild credit after bankruptcy from our trusted advisors.
- If you file for bankruptcy, you will not necessarily lose your home, car, or other assets. In fact, you can stop repossession and keep many of your assets.
- If you are not eligible for a Chapter 7 bankruptcy, you have additional options. Chapter 13 bankruptcy does not have a means test.
- If your bank sees a bankruptcy on your credit report, it is still possible they will grant you a loan. Creditors may see bankruptcy as less damaging than years of unpaid debts.
- When you file a Chapter 7 or Chapter 13 bankruptcy, it automatically halts all creditor actions against you, including wage garnishment, harassment, repossession actions, and more.
Contact Us for Help Today
Schedule an appointment with us to discuss Chapter 13 bankruptcy. We are available Monday through Friday during regular business hours and, if necessary, evenings by appointment.