Chapter 13 Bankruptcy Attorneys in Pennsylvania Help You Find a Way to Pay Your Debts Over Time
What is Chapter 13 bankruptcy?
Chapter 13 is a bankruptcy in which you create a payment with the court that allows you to pay back some or all of your debts over time. Chapter 13 is usually a good option for those who do not qualify for Chapter 7 because their income is above the means test threshold.
How does Chapter 13 work?
Like Chapter 7, you initiate the process by submitting to the court a bankruptcy petition, schedules and other documents detailing your financial situation. However, under Chapter 13, you also submit a plan for repayment of your debts, typically over 36–60 months, depending on your disposable income.Our lawyers will help you devise the plan, which will show the court the following:
- How you intend to pay back your debts
- How long they will take to pay back
- How much each creditor will get
Advantages of Chapter 13
With our PA lawyers’ assistance, we can enable you to take advantage of the numerous benefits to Chapter 13 that are not available under Chapter 7. Those benefits include, but are not limited to:
- Save your car and/or home. The main advantage of Chapter 13 is that it may allow you to keep your home and/or car. If you are overdue on your mortgage or auto loan payments, the Chapter 13 payment plan will give you a chance to catch up on the missed payments over time.
- Repay only a portion of unsecured debt. Although most secured debt must be 100% repaid either through the repayment plan or according to your secured loan agreement, payment of many unsecured creditors (for example, credit cards, signature loans, etc.) will be reduced and or possibly avoided completely
- Reduce payments on non-dischargeable debt. Although some debts are not dischargeable (i.e. student loans, certain taxes), Chapter 13 gives you a chance to stretch repayment of those debts over time.
- Don’t deal with creditors. Your payments are made directly to the trustee, who in turn pays your creditors; you do not have to deal directly with creditors.
- Strip off a second mortgage lien. If the second mortgage on your home is entirely “under water,” Chapter 13 allows for striping off the second mortgage lien and repaying the debt like any other unsecured debt.
Similar to Chapter 13, Chapter 12 helps farmers and fisherman take advantage of bankruptcy protection by using a repayment plan.
Get a fresh financial start in PA
Helping individuals and families get a fresh financial start is our area of expertise. Contact our experienced PA bankruptcy law firm today to discuss your case. Our three offices are conveniently located in Lancaster, Malvern and Wyomissing. Contact Case & DiGiamberardino P.C. by 610.372.9900 or online.