Chapter 13

Stop Foreclosures With Chapter 13 Bankruptcy

Chapter 13 is a reorganization under the Bankruptcy Code. Under Chapter 13 the debtor files a plan with the court that provides for payment of at least a portion of his or her debts over a period usually between three and five years. The plan will require the debtor to make a single monthly payment to a Chapter 13 trustee who takes the money and distributes it under the terms of the debtor's plan. Your monthly payment is generally determined by the amount you are able to pay after providing for reasonable living expenses. The debtor's plan usually stands if it is feasible and properly addresses each of the creditors. The creditors can object to the plan, but objections are most often resolved by negotiations.

Chapter 13 is often the correct choice for individuals who do not properly fit in Chapter 7 because their budget does not comply with the Chapter 7 insolvency requirements That means you cannot have disposable income remaining in your budget after payment of all of your reasonable monthly living expenses not including payments towards any of your debts or they have valuable assets that might become threatened in a liquidation under Chapter 7.

Current law allows you to remake certain debts, like car loans, to lower the monthly payments and usually reduce the total amount of the loan. You can catch up on missed mortgage payments, stop foreclosures and protect your home. In most cases unsecured creditors (like credit cards and medical bills, etc.) can receive as little as five percent of the total debt with no interest.

If you would like to discuss your Chapter 13 bankruptcy case with one of our experienced attorneys, contact us (link to contact us page) today to schedule an appointment. Our North Charleston and Columbia offices are open Monday through Friday from 8:30 a.m. to 5:30 p.m. We look forward to assisting you.