Long Island Chapter 13 Bankruptcy Lawyer

Advantages of Filing Chapter 13

Filing for bankruptcy under Chapter 13 of bankruptcy law will come with a number of advantages. A Long Island Chapter 13 bankruptcy attorney from our firm will be able to explain to you all of the benefits you will enjoy by filing under Chapter 13 depending upon your specific situation. Chapter 13 bankruptcy holds a number of benefits over filing under Chapter 7, and one reason it is appealing to most people is because there is a greater chance of retaining assets. Chapter 7 involves the liquidation of a person’s assets to pay off debt, which can be a scary thing for many people to face. Individuals wishing to retain their property may choose to file under Chapter 13 because their debt will be restructured and they can pay off the debt over time instead of having all their assets liquidated to pay off the debt.

Long Island Attorney Helping You File Ch. 13 Bankruptcy

Our attorneys have seen their clients enjoy many of the following advantages by filing Chapter 13 bankruptcy:

You can prevent your home from being foreclosed on.
You can pay off past due mortgage payments or car payments.
Chapter 13 may be effective in paying back taxes and can stop interest from accruing on your tax debts
You can keep valuable property & assets which would not be exempt under Chapter 7 bankruptcy.
If you keep your agreement and pay the monthly payment for the entire term of your bankruptcy, your remaining debt will be discharged.
After being approved for Chapter 13, creditors must stop all collection efforts.
Filing for Chapter 13 will put an end to creditor harassment
Filing for Chapter 13 will put an end to wage garnishments
Chapter 13 will place an automatic stay on foreclosure proceedings if you have already been served a foreclosure notice.

Common Misconceptions about Filing for Chapter 13

The two most common misconceptions about Chapter 13 bankruptcy are that it will permanently damage your credit rating and that you will lose your home, vehicle, and other valuable assets during the bankruptcy process. This could not be further from the truth. While your credit will undoubtedly take a hit, many people are surprised how quickly they are able to start rebuilding their credit, even with a bankruptcy on their credit history.

If you are worried about losing your assets, you shouldn't be. Unlike Chapter 7 bankruptcy, your assets will not be liquidated when you file for Chapter 13. Instead of liquidating your assets to repay your creditors, your debts are consolidated into a lump sum that you are responsible for paying off over the course of three to five years.

For more information about the advantages of filing under Chapter 13, contact a Long Island Chapter 13 bankruptcy lawyer at Jacoby & Jacoby!