February 18, 2016
Chapter 13 bankruptcy can be a useful tool to prevent foreclosure, prevent repossession, terminate garnishments, eliminate tax debts, catch up late payments in a mortgage, or to simply regain control of your personal financial situation. It may make it possible to reduce the interest you are paying on your vehicle, reduce your monthly car payment, or even to reduce the total amount of your loan. In certain circumstances, the ability to stop penalties, fees, and high interest charges may be enough reason to consider a Chapter 13 bankruptcy.
In a Chapter 13 case, we assist you in developing a household budget, and after subtracting the monthly budgeted expenses from the total household income, the remainder is considered disposable monthly income. All disposable monthly income must be paid to the Trustee. The Trustee will use this money to pay debts in order of the priority by the bankruptcy code and the Chapter 13 Plan. These payments will last somewhere between 36 and 60 months, and once the Plan is successfully completed most remaining debts are discharged.