Chapter 13 Can Help You Reduce Your Debts and Keep Your Home

The mortgage meltdown and tough economic climate have made it difficult for many Americans to keep up with their mortgage payments. Some people have lost their jobs. Others cannot manage increasing payments on adjustable-rate mortgages, or are now upside down in their mortgage due to falling property values.

If you are having trouble paying your mortgage and other bills, bankruptcy may be an option. Chapter 13 may help you keep your home if you have adequate income to repay the majority of your debts after they are reorganized.

At Markowitz O'Donnell, LLP, our lawyers will review your finances and discuss your debt relief options with you. To schedule an appointment, please call attorneys at 866-437-1189 or contact us online.

The Benefits of Chapter 13

Many people file Chapter 13 to stop foreclosure on their homes. Under Chapter 13, your debts, including your mortgage, will be restructured into a repayment plan over three to five years. Your monthly payments will be lowered under the plan so you can afford to make them. When you have successfully completed the repayment plan, your remaining debt may be discharged if it is eligible. Typically, unsecured debt, such as medical bills, is discharged.

Chapter 13 will not relieve you of all types of debt, however. You need to repay in full the following obligations: secured debt, alimony, child support, certain taxes and injury judgments.

There are several benefits to filing Chapter 13 bankruptcy. It allows more flexibility for keeping your assets than Chapter 7. Because creditors will eventually receive most of the money you owe them, Chapter 13 is not as bad for your credit rating as Chapter 7.

You will also benefit from the automatic stay. This stops all collection activities, including foreclosure and vehicle repossession, while the bankruptcy is in progress. It also stops creditor harassment, wage garnishment, calls and letters. If the bankruptcy is successfully completed, creditors will have no reason to harass you when it is over.

Learn More About Your Debt-Relief Options

Please call us at 609-482-3138 or 866-437-1189 to speak with one of our experienced lawyers. Located in Lawrenceville, our firm helps individuals throughout New Jersey find debt relief through bankruptcy.