Chapter 13 Bankruptcy
BANKRUPTCY ATTORNEY IN RICHMOND
Where a chapter 7 bankruptcy is a liquidation and wipe out of debt bankruptcy, a chapter 13 is a reorganization and repayment of debt bankruptcy.
A chapter 13 lasts from 3 to 5 years and provides a various set of solutions. A 13 can stop a foreclosure a repay mortgage arrears. It can stop a car from being repossessed and can either repay car loan arrears or the entire balance of a car loan at a reduced interest rate or at the value of the car rather than the balance on the loan in some instances. Some people who have high credit card or medical or other unsecured debts can propose to repay these debts at a small percentage of the balances that are owed on them and then at the end of the bankruptcy can discharge the remaining balances that are owed. Debtors who have high tax debts or a child support arrears can have those liabilities paid in full through a chapter 13 plan. Some people who file a chapter 13 choose to no longer keep their home or car that has outstanding debts on them and are able to walk away from those properties by surrendering their interest and obtaining a discharge from the debts that secure the underlying collateral. While a chapter 13 allows individuals to keep the property that they own, several factors may cause a debtor to have to pay more back to unsecured creditors than other debtors. How much income a household makes, how much your property is worth and how much your monthly income/expense budget looks like re all factors that may determine how much your monthly payment is in a chapter 13 and how much debt needs to be repaid.
LET RICHMOND’S BANKRUPTCY LAWYERS at PAGANO & MARKS determine whether you might be a good candidate for a financial reorganization in a chapter 13 bankruptcy. Contact our firm today to discuss your financial situation, your available options and how we can help pursue the best option for you. Call 804-447-1002 now.