Debt Reorganization — Chapter 13
Chapter 13 bankruptcy (adjustment of debts of an individual with regular income), often referred to as wage earner bankruptcy, is designed for people with a regular income who want to, but are unable to, pay off their debts. Ammerman & Goldberg "Bankruptcy" Law Office routinely helps people in Washington, D.C., Maryland and Virginia who are struggling to pay their bills file for Chapter 13 bankruptcy.
Chapter 13 Bankruptcy and Your Rights
Under Chapter 13 bankruptcy, debtors are allowed to keep all their possessions. Debtors are able to consolidate their debts and make payments over a three- to five-year period. During this time, creditors are prohibited from beginning or continuing collection actions. Some of the debts that can be consolidated under Chapter 13 bankruptcy include outstanding mortgage payments, auto payments, student loans, credit cards and any other unsecured debts.
Stop Home Foreclosure — Bankruptcy Chapter 13 Attorneys, Washington, D.C.
Filing for Chapter 13 bankruptcy can prevent or terminate the foreclosure of your home. Under Chapter 13 bankruptcy, a payment plan will be developed that will allow you to keep your home despite mortgage arrears. You will still have to make regular monthly mortgage payments. However, while under a Chapter 13 bankruptcy plan, mortgage companies cannot foreclose or attempt to collect past due mortgage payments.
Prevent Your Car From Being Repossessed
Under Chapter 13 bankruptcy your car cannot be repossessed. Automobile payments are part of the Chapter 13 bankruptcy debt consolidation. Any back payments and future payments will be made to the Chapter 13 bankruptcy trustee who will make payments to the finance company. In some cases, we can recover repossessed automobiles.
Consolidate Student Loans
Under Chapter 13 bankruptcy student loans can be consolidated along with your other bills. Unlike Chapter 7 bankruptcy, Chapter 13 student loan consolidation allows you to end harassing collection actions and garnishments. Under a Chapter 13 bankruptcy payment plan student loans can be paid off over three to five years as part of the loan consolidation plan.
If a friend or family member has co-signed for an automobile or other loan, filing for Chapter 13 bankruptcy can prevent or end collection actions against you and your co-signer. Once our firm files your Chapter 13 bankruptcy petition, your co-signers receive the same protection from creditor collections that you receive. We can include your co-signed debts as part of the Chapter 13 debt consolidation plan.
Be Aware of Refinancing
Chapter 13 bankruptcy can protect the equity you have built up in your home. Refinancing a home in an effort to avoid bankruptcy can add another mortgage payment that in the end may force you to file a Chapter 7 liquidation bankruptcy, rather than a Chapter 13 bankruptcy. An experienced Chapter 13 bankruptcy lawyer can explain the laws and protect you from the negative consequences of additional mortgage payments you cannot afford. Our bankruptcy attorneys can help protect you from high interest loans that can eat away at the equity you have in your home.
While the federal courts have exclusive jurisdiction over bankruptcy cases, there are local rules in every jurisdiction. It is important to have an attorney who is familiar with and routinely handles Chapter 13 bankruptcy cases in the jurisdiction in which you live.
To learn more about your debt relief options, please call 202-559-1428 for a free telephone consultation or contact our office by filling out our online form.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.