New York Bankruptcy Attorneys

Filing Chapter 13 Bankruptcy

Individuals who are overwhelmed with debt, facing foreclosure, or wishing to consolidate their bills may want to consider filing Chapter 13 bankruptcy.  Filing bankruptcy can be a scary thing, but as our lawyers will tell you, when in a considerable amount of debt it can be a very good way to get your finances back on track.  If you are currently facing financial difficulty because of excessive debt, or are in danger of losing your home to foreclosure, you should speak with a New York Chapter 13 bankruptcy lawyer about your options.

Filing Chapter 13 bankruptcy is a very good option for individuals who have steady incomes and property or assets that they do not want to lose by filing under Chapter 7.  When a person files Chapter 7 bankruptcy, many of their assets will be liquidated, or sold off, in order to pay off outstanding debts.  Chapter 13 bankruptcy does not involve the liquidation of assets, but instead restructures or reorganizes the debt so that it can be paid off in monthly installments.   A person will usually have between 3 and 5 years to pay off debt when they file Chapter 13 bankruptcy. 

Many New York residents who are facing foreclosure also choose to file Chapter 13 bankruptcy.  When an individual files a petition for Chapter 13 bankruptcy, an automatic stay will be placed upon foreclosure proceedings, preventing the home from being foreclosed upon.  The delinquent or missing mortgage payments can be paid off over time after Chapter 13 bankruptcy is declared, making it possible to keep your home. 

After a Chapter 13 bankruptcy petition has been approved by the court, you will begin making monthly payments to pay off all or part of the debt that you owe.  Payments are usually made anywhere between three and five years, and the exact monthly payment amount will depend upon your disposable income.  By filing Chapter 13 bankruptcy, you can begin to pay off your debt in a controlled environment and begin on your journey to financial stability.

For help filing Chapter 13 bankruptcy, contact a New York Chapter 13 Bankruptcy Attorney at Jacoby & Jacoby!