When should I file for Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy is a repayment plan. Normally you would file this type of case if you have debts that need to be paid back.

If you are behind on your mortgage payments and want to keep your house, you can file a Chapter 13 bankruptcy and catch up the missed mortgage payments through the Chapter 13.

If you are behind on your car payments and want to keep your car, you can pay for the car through a Chapter 13 bankruptcy. Depending on how old the loan is, you may be able to reduce the amount that has to be paid back or you may be able to lower the interest rate on the loan.

If you have a large amount of tax debt, you can pay it back through a Chapter 13 bankruptcy. In addition, if you have a tax lien, you may be able to pay it off for far less than the amount of the lien.

There are other benefits from filing a Chapter 13 bankruptcy. You may be able to remove a second mortgage lien from your house. You can also discharge some debts that can not be discharged in a Chapter 7 bankruptcy.

You may need to file a Chapter 13 bankruptcy if you have equity in a home or have other assets that need to be protected. You may also have to file a Chapter 13 bankruptcy if your income is above a certain amount based on the size of your household.

Chapter 13s are very complex cases and should not be attempted without the assistance of an experienced bankruptcy attorney. Contact us or call us today at 757-320-2010. We can meet with you and discuss your situation. There is no charge for the initial consultation and we will let you know what will be best for you.

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Edrie Pfeiffer
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Edrie Pfeiffer, Bankruptcy & Divorce Attorney