Chapter 13 is commonly referred to as an “Installment” or “Restructuring” Bankruptcy.
Chapter 13 bankruptcy is designed to help you keep your home, vehicle and other secured items so you can repay them over time. What we do is set up a more reasonable arrangement through the court, called a “payment plan” for you so you can stay on top of your current monthly payments. This will help you to pay your bills easier.
Each month you make your single payment to the trustee. Under your plan, all of your creditors are given a priority and the trustee makes the payments creditors each month. Often at the end of the payment plan, which typically last three to five years, there is not enough money for all of the creditors. This can sometimes lead to the court stripping off a second mortgage or leaving many of your unsecured creditors such as credit card companies out of your life, but without them receiving a dime.
You may want to consider a Chapter 13 bankruptcy if any of the following describe your situation:
• You have had a sudden job loss or unexpected medical bills that have caused you to fall behind on your bills.
• You can afford your normal monthly payments but just cannot catch up on your past-due payments.
• You can afford to make some payment toward your bills but are unable to pay as much as your creditors want.
• Your home is facing foreclosure and you want to continue living there
While a Chapter 7 bankruptcy eliminates your debts quickly through a liquidation, the Chapter 13 bankruptcy is designed to help you keep your property while gradually catching up on past-due balances. Why feel the stress of a foreclosure or repossession when a Chapter 13 bankruptcy may take this pressure off of you by allowing you to catch up on your past due payments in a more reasonable repayment plan without losing your home or car?
To learn more about the services offered by The Law Office of Anna Sarrazin contact us on line a www.sarrazinlawoffice.com or call us at (510) 834-7443.
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