Chapter 13 Bankruptcy Lawyer in Hamilton, NJ
Chapter 13 Bankruptcy
The second type of bankruptcy
used by individuals is Chapter 13. A
Chapter 13 is used when either you do not qualify for a Chapter 7 or if your
specific situation requires it. The Chapter 13 lasts between 3 to 5 years
and requires a repayment for this time period. Since every Chapter 13 is
unique I will work with you to determine what your case will require.Typically
individuals fall into one of two categories:
Category One: You catch up on arrears on secured or priority debt
(Mortgage, car payment, IRS/State of NJ Taxation). In this situation you
usually pay none or very little of your unsecured debt.
Category Two: You pay back some of your unsecured debt. This
comes up when either your income or disposable income is too high to qualify
for Chapter 7 or you have valuable assets that exceed the Chapter 7 thresholds.
Advantages of Chapter 13:
None of your assets are liquidated (involuntarily sold) if you
exceed the thresholds. You remain in control of your property.
You have the ability to modify or eliminate some secured
If you have multiple mortgages on your house you may be able to
get rid of the second or third mortgage.
If you have a high interest rate car loan you can force your car
lender to accept a lower interest rate.
As your attorney we will work with you to put together a plan that
will help you accomplice your goals while meeting the criteria imposed by the