Chapter 13 bankruptcy or otherwise known as repayment bankruptcy will be explained in this video. Essentially chapter 13 bankruptcy is for debtors that either make too much money to file Chapter 7 bankruptcy, are behind on payments of the secured debt such as a mortgage or car loan, or have too many valuable assets which they would not want liquidated in a chapter 7 bankruptcy proceeding. Essentially chapter 13 bankruptcy is a way for you to either save your home or vehicle secured by a debt, I which point you will be given 3 to 5 years to repay the arrearages while continuing to pay your normal monthly payment.
Chapter 13 bankruptcy is extremely important for people who make too much money to file Chapter 7 bankruptcy or are in a financial situation which Chapter 7 bankruptcy cannot address. Working together with your Chapter 13 bankruptcy attorney you can come up with a repayment plan that works best for your financial situation and allows you to keep property that may have otherwise been lost in a chapter 7 bankruptcy.
Essentially your Chapter 13 bankruptcy attorney will go over all your monthly expenses and financial obligations, factoring in all available household income and devising a repayment plan over 3 to 5 years, that will satisfy the arrears you have on secured debts and partially repay your unsecured debts. It is critical that you have the oven experience Chapter 13 bankruptcy attorney, as Chapter 13 bankruptcy’s are significantly more complicated than a chapter 7 bankruptcy is.
Joseph F. Botelho, Esq.
BOTELHO LAW GROUP
Attorneys At Law
901 Eastern Ave.
Fall River, MA 02723