Chapter 13

CHAPTER 13 BANKRUPTCY | ADJUSTMENT OF DEBTS AND REORGANIZATION

Experienced Central Florida Bankruptcy Attorney
Chapter 7 bankruptcy is a good option for many people, but it is not the best option for everybody. For those who can afford to cure past due mortgage payments or pay off their debts over time or who do not qualify under the required Chapter 7 means test, Chapter 13 bankruptcy can provide a better solution to protect you from aggressive creditors and keep assets.

Chapter 13 allows people to pay what they can afford of their debts under a court-supervised repayment plan. We start with curing mortgage defaults and curing arrears over time.  It may also mean “lien stripping” off a 2nd or 3rd mortgage if your equity has been wiped out by the current real estate market. At BAKER LAW, P.L. we can explain Chapter 13 bankruptcy and discuss whether or not Chapter 13 is the correct option for your financial situation based upon what you want to see happen and what we have the ability to make happen.

CONTACT US TODAY AT 407-647-8833 FOR A FREE, NO OBLIGATION, CONSULTATION

Adjustment of Debts
Some debts can be adjusted in Chapter 13, making it affordable to keep assets.  For example, some car loans can be lowered based on how long you have owned your car and if you owe more than it is currently worth.  Also, interest rates can be reduced in some cases to prime plus a risk factor. 

Mortgages
If you are behind on mortgage payments, Chapter 13 establishes a repayment plan to catch up over a 3 to 5 year period by making monthly payments to the Chapter 13 Trustee, who pays creditors required to be paid.  We aggressively object to undocumented proofs of claim filed in cases and try to reduce the amount of allowed claims in every case we handle.  There is also no restriction on attempting future loan modification requests while you are in a Chapter 13 Bankruptcy Case.  The goal is that by the end of the Plan you are debt free on cars and credit cards and mortgage arrears are cured and reinstated.

Lien Stripping
Most people do not know that it may be possible to eliminate 2nd and 3rd mortgages on real estate.  Under current law, if the value of your home is less than you owe on your 1st mortgage, any other junior mortgages can be “stripped off” and reduced to an unsecured claim.  Many people were required to enter into 80/20 financing when they purchased their home and that 20% 2nd mortgage is more than likely a lien that can be stripped.  This can sometimes mean the difference between losing and keeping a home.  For many, if the 2nd mortgage is gone, their car payment is reduced and no payments on credit cards, they can afford to keep their home.

Credit Cards & Medical (unsecured)
If you have $20,000 of debt at a 25 percent interest rate and you make a monthly payment of less than $500, you may end up paying your creditors more than $100,000 over a 20-year period. Chapter 13 bankruptcy can stop fees and interest from accruing, so that you can really start paying off your debts.  The system is based upon ability to pay.  Some people can repay creditors partially or in full when fees and interest stop getting added to the balance.  When you file a Chapter 13 Bankruptcy Case, these credit card accounts stop accruing interest and penalties.  Whether you repay at all depends upon your income and other assets you may own, if any.

Keep Your Property and Assets
Filing for Chapter 13 bankruptcy may help you hold on to your possessions and stop foreclosure on your home. Bankruptcy can make it easier to make house and car payments and keep your debts from piling up on you. Chapter 13 Bankruptcy can also stop creditors from harassing you with phone calls and letters. You can regain control of your life and get the stress and debt relief that you need. You reorganize, keep assets and get a fresh start.

CONTACT US TODAY AT 407-647-8833 FOR A FREE, NO OBLIGATION, CONSULTATION

Call 407-647-8833 or contact us here to make an appointment for a free consultation with Attorney Richard R. Baker. Let's discuss your situation and see if bankruptcy is a good option for you.

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