Monday, November 23, 2020

CHAPTER 13 BANKRUPTCY - LAWYER IN HACKENSACK NEW JERSEY (201) 646-3333

 

 Chapter 13 - Bankruptcy Basics


This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.


Background


chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapterdebtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." (1) If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. § 1322(d). During this time the law forbids creditors from starting or continuing collection efforts.

Hi my name is Matthew John, I'm an attorney in Fort Lee, I've been practicing in the Fort Lee area for well over 20 years. I know Rafael Gomez for most of those years, have known him and out of the court had dealings with Mr Gomez and I know that he's an excellent lawyer and most importantly I know that he gives much great detail and attention to the welfare of his clients. I think that's the most important part for an attorney is to care about this clients which I ultimately end up in a good result for the client as well. So if anyone asks I recommend Rafael Gomez very highly and give him excellent rating.


This chapter discusses six aspects of a chapter 13 proceeding: the advantages of choosing chapter 13, the chapter 13 eligibility requirements, how a chapter 13 proceeding works, making the plan work, and the special chapter 13 discharge.


Advantages of Chapter 13


Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the paymentsChapter 13 also has a special provision that protects third parties who are liable with the debtor on "consumer debts." This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.

Hi my name is Colleen Legassic and I had Rafael represent me and I came out a winner.

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