Long Island Bankruptcy Attorneys

Chapter 13 Bankruptcy

If you have a steady income but are still having trouble paying off your debts, Chapter 13 bankruptcy may be a good option for you.  With Chapter 13 bankruptcy, a person’s debt will be “reorganized,” and all of their debts will be consolidated and restructured into an affordable monthly payment plan.  One of the big appealing factors of Chapter 13 is that it does not involve asset liquidation like Chapter 7, and many people are more comfortable with the less drastic approach offered by Chapter 13 bankruptcy.  Whether you are behind on your car payments, have accumulated excessive credit card debts, or are in danger of foreclosure, a Long Island bankruptcy attorney can help you improve your situation. 

Also known as a “wage earners plan,” Chapter 13 bankruptcy will enable individuals with regular, steady incomes to develop a plan to repay all or part of their debt.  Many individuals choose Chapter 13 bankruptcy over Chapter 7 because it can save their homes from foreclosure.  When a person files under Chapter 13, foreclosure proceedings can be stopped and delinquent mortgage payments can be paid back over time.  Your Long Island bankruptcy lawyer will help you come up with a repayment plan to pay installments to creditors for 3-5 years.  This plan must be approved by a judge at bankruptcy court, so it is important that the plan be realistic and well thought out, which is why having a lawyer will help. 

Any individual is eligible for relief under Chapter 13 as long as their unsecured debts are less than $307, 675, and their secured debts are less than $922,975.  Special circumstances may sometimes prevent a person from filing under Chapter 13, so it is always a good idea to speak with an attorney in New York to discuss your options. 

For more information about Chapter 13 bankruptcy, contact a Long Island Bankruptcy Lawyer at Jacoby & Jacoby!