Chapter 13 Bankruptcy Law
Chapter 13 bankruptcy (Adjustment of Debts of an Individual with Regular Income), often referred to as wage earner bankruptcy, is designed for people with a regular income who want to, but are unable to, pay off their debts. Ammerman & Goldberg routinely helps people struggling to pay their bills file for Chapter 13 bankruptcy.
Under Chapter 13 bankruptcy, unlike Chapter 7 bankruptcy, debtors are allowed to keep all their possessions. Debtors are able to consolidate their debts and make payments over a three to five year period. During this time, creditors are prohibited from beginning or continuing collection actions. Some of the debts that can be consolidated under Chapter 13 bankruptcy include outstanding mortgage payments, auto payments, student loans, credit cards, and any other unsecured debts.
An Important Notice to People Considering Chapter 13 Bankruptcy
The attorneys at the Maryland, Virginia, and Washington D.C. bankruptcy law firm of Ammerman & Goldberg want to ALERT you to important information regarding Chapter 13 Bankruptcy: Congress is considering new bankruptcy laws that may limit your right to get out of debt. Our experienced Chapter 13 bankruptcy attorney can still help you get out from under your debt using the existing bankruptcy laws.
Stop Home Foreclosure
Filing for Chapter 13 bankruptcy can prevent or terminate the foreclosure of your home. Under Chapter 13 bankruptcy, a payment plan will be developed that will allow you to keep your home despite mortgage arrears. You will still have to make regular monthly mortgage payments.. However, while under a Chapter 13 bankruptcy plan, mortgage companies cannot foreclose or attempt to collect past due mortgage payments.
Prevent Your Car from being Repossessed
Under Chapter 13 bankruptcy your car cannot be repossessed. Automobile payments are part of the Chapter 13 bankruptcy debt consolidation. Any back payments and future payments will be made to the Chapter 13 bankruptcy trustee who will make payments to the finance company. In some cases, we can recover repossessed automobiles.
Reduce Automobile Payments
Our attorneys can also use Chapter 13 to reduce your car payment and consolidate other debts that you cannot afford to pay. In a Chapter 13 bankruptcy, we can reduce the total amount you pay the finance company so that you only pay the value of the vehicle plus interest. Any money owed to the finance company above that amount can be paid, in most circumstances, at a percentage on the dollar. Even if the car has already been repossessed, we may be able to force the finance company to return the vehicle and then reduce your car payment. We can also consolidate any other outstanding bills so that you can pay those debts at a percentage on the dollar as well.
Consolidate Student Loans
Under Chapter 13 bankruptcy student loans can be consolidated along with your other bills. Unlike Chapter 7 bankruptcy, Chapter 13 student loan consolidation allows you to end harassing collection actions and garnishments. Under a Chapter 13 bankruptcy payment plan student loans can be paid off over three to five years as part of the loan consolidation plan.
Protect Cosigners
If a friend or family member has cosigned for an automobile or other loan, filing for Chapter 13 bankruptcy can prevent or end collection actions against you and your cosigner. Once Ammerman & Goldberg files your Chapter 13 bankruptcy petition, your cosigners receive the same protection from creditor collections that you receive. We can include your cosigned debts as part of the Chapter 13 debt consolidation plan.
Be Aware of Refinancing
Chapter 13 bankruptcy can protect the equity you have built up in your home. Refinancing a home in an effort to avoid bankruptcy can add another mortgage payment that in the end may force you to file a Chapter 7 liquidation bankruptcy, rather than a Chapter 13 bankruptcy. An experienced Chapter 13 bankruptcy lawyer can explain the laws and protect you from the negative consequences of additional mortgage payments you can not afford. Our bankruptcy attorneys can help you from high interest loans that can eat away at the equity you have in your home.
While the federal courts have exclusive jurisdiction over bankruptcy cases, there are local rules in every jurisdiction. It is important to have an attorney who is familiar with and routinely handles Chapter 13 bankruptcy cases in the jurisdiction in which you live.
For more information about bankruptcy, please visit our other practice centers: Bankruptcy General, Bankruptcy Chapter 7, Bankruptcy Chapter 13, and Bankruptcy Debtor - Creditor.
Our bankruptcy law practice represents clients throughout the District of Columbia, Maryland, and Virginia, including Silver Spring, Bethesda, Rockville, Landover, Greenbelt, Bowie, Upper Marlboro, Arlington, Alexandria, Falls Church, Vienna, Fairfax, and Washington D.C. including Prince George's and Montgomery counties.
