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Chapter 13

Is Chapter 13 Bankruptcy Right For You?

One debt relief option that many people don't hear or read much about is Chapter 13 bankruptcy.  Chapter 13 bankruptcy is an alternative for individuals or couples to the more straightforward Chapter 7 or the more complex and expensive Chapter 11 bankruptcy.  Chapter 13 is often referred to as a wage-earner bankruptcy or a reorganization bankruptcy. It differs from Chapter 7 bankruptcy since it is a reorganization and requires monthly payments toward your debt.

People who file Chapter 13 bankruptcy propose a plan of reorganization to pay a portion of their debts over a three to five-year period.  The unpaid portion of the unsecured debt will be discharged at the end of the case.  People who file for Chapter 13 are often homeowners who are behind on their mortgage, have an income source, overwhelming debts, and assets that they wish to retain.

Using Chapter 13 To Reduce Your Debts

Chapter 13 bankruptcy is a good way to retain assets such as a home and cars and reduce one's total debt obligations.  A Chapter 13 may be the best solution in the following situations:

  1. If you are behind on your mortgage payments, but could catch up within three to five years while making ongoing mortgage payments if you were allowed to reduce or eliminate other bills and liabilities.
  2. If your property is worth less than the amount owed on your first mortgage, and you have a second mortgage on the property, then you may be able to eliminate the second mortgage, and turn this into an unsecured claim.
  3. If you owe the IRS or state for taxes, but could repay the priority portion of those taxes over three to five years.
  4. If you earn more than the median income for a Chapter 7 bankruptcy and have substantial credit card debt, personal loans, or medical bills.

Like any significant legal action, a Chapter 13 bankruptcy is not to be taken lightly. However, with the counsel and guidance of The Law Firm of Ullian & Associates, P.C., you can be sure you have made the right decision and take comfort that we have done everything possible to reduce or eliminate your debts and protect your assets.

Thinking about a Chapter 13? | Free Consultation

We provide big-firm expertise with small-firm attention. Our experienced Braintree Chapter 13 bankruptcy attorneys, John Ullian and Amy Puliafico, can explain all of your options and guide you toward pursuing the course of action that works best for you.  To schedule a free consultation to discuss your options for a fresh financial start with an experienced bankruptcy attorney, contact the firm online or call 781-848-5980.

The Law Firm of Ullian & Associates, P.C., is a debt relief agency. The firm helps people file for bankruptcy relief under the Bankruptcy Code.

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