Chapter 13 Bankruptcy &
Debtors Behind on Mortgages

What is Chapter 13 Bankruptcy?
  • Chapter 13 bankruptcy is a legal process that allows individuals to reorganize their debts and create a repayment plan.
  • The repayment plan is based on the debtor’s income and expenses, and can last for three to five years.
  • Chapter 13 is often a good option for those who are behind on mortgage payments or other secured debt obligations, as it can help prevent foreclosure or repossession.

Benefits of Filing for Chapter 13 Bankruptcy
  • Stop foreclosure and repossession: Chapter 13 bankruptcy can stop the foreclosure process and allow debtors to catch up on missed mortgage payments or other secured debts.
  • Reduce or eliminate unsecured debts: Debts such as credit card balances and medical bills can be reduced or eliminated through the repayment plan.
  • Protect co-signers: Chapter 13 can also protect co-signers on loans from being held responsible for the debt.
  • Keep non-exempt assets: Unlike Chapter 7 bankruptcy, Chapter 13 allows debtors to keep non-exempt assets such as a home or car by making payments through the repayment plan.

Process of Filing for Chapter 13 Bankruptcy
  • Credit counseling: Before filing for bankruptcy, debtors are required to attend credit counseling.
  • Filing: Debtors must file a petition with the bankruptcy court, which includes information about their debts, assets, and income.
  • Repayment plan: The debtor must propose a repayment plan, which is subject to court approval.
  • Trustee: A bankruptcy trustee is assigned to the case to oversee the repayment plan and ensure compliance.
  • Payments: Debtors must make regular payments to the trustee, who then distributes the funds to creditors.
  • Discharge: Once the repayment plan is complete, any remaining eligible debts are discharged.

Chapter 7 Bankruptcy

Are you overwhelmed with unsecured debts and struggling to make ends meet? Filing for Chapter 7 bankruptcy may be the solution you need to regain control of your finances and get a fresh start.

Benefits of Chapter 7 Bankruptcy
  • Discharge of most unsecured debts, including credit card balances, medical bills, and personal loans.
  • Stop collection efforts and creditor harassment, including wage garnishment and lawsuits.
  • Keep exempt property, such as your primary residence and personal belongings.
  • Obtain relief from financial stress and gain a fresh start towards a brighter financial future.

Process of Filing for Chapter 7 Bankruptcy
  • Consultation: Schedule a consultation with our experienced bankruptcy attorney to determine if Chapter 7 bankruptcy is right for you.
  • Credit counseling: Before filing for bankruptcy, you must complete a credit counseling course from an approved agency.
  • Filing: Our attorney will prepare and file your Chapter 7 bankruptcy petition and supporting documents with the bankruptcy court.
  • Automatic stay: Once your bankruptcy petition is filed, an automatic stay goes into effect, halting all collection actions against you.
  • Meeting of creditors: You will attend a meeting of creditors, where the trustee will review your bankruptcy petition and ask you questions under oath.
  • Discharge: If everything goes smoothly, you will receive a discharge of most unsecured debts within a few months.

Chapter 11 Bankruptcy

This type of bankruptcy allows businesses to reorganize their debts while continuing to operate and eventually emerge as a stronger, more financially stable entity.

Benefits of Chapter 11 Bankruptcy
Filing for Chapter 11 bankruptcy can provide numerous benefits, including:
  • Protection from creditors: Once a Chapter 11 bankruptcy is filed, an automatic stay goes into effect, which prevents creditors from pursuing collections actions against the business. This provides breathing room and time to reorganize debts and assets.
  • Continuation of business operations: Unlike other types of bankruptcy, Chapter 11 allows the business to continue operating under court supervision. This means that the business can continue generating income and paying employees while working towards a plan to reorganize its debts.
  • Repayment plan: Through the Chapter 11 process, the business can create a repayment plan to pay back its debts over a longer period of time, with the possibility of reducing the total amount owed.
  • Asset protection: In some cases, Chapter 11 may allow a business to sell off unprofitable assets and focus on its core operations..
How Chapter 11 Bankruptcy Works
The Chapter 11 process typically involves the following steps:
  • Filing for bankruptcy: The business must file a petition for Chapter 11 bankruptcy with the bankruptcy court.
  • Automatic stay: Once the petition is filed, an automatic stay goes into effect, which prevents creditors from pursuing collections actions against the business.
  • Disclosure statement: The business must file a disclosure statement with the court, which outlines its financial situation, proposed repayment plan, and other relevant information.
  • Confirmation hearing: The court will hold a hearing to review and approve the disclosure statement and proposed plan. Creditors may object to the plan during this hearing.
  • Plan implementation: Once the court approves the plan, the business can begin implementing it, which may involve selling off assets, renegotiating debts, and making payments according to the plan


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