A Chapter 13 bankruptcy is a reorganization or repayment bankruptcy that stops foreclosure and sheriff's sales and prevents repossession and utility shutoffs, but most of all gives you a fresh start.
Introduction to Bankruptcy
Bankruptcy, including New Jersey bankruptcy, is a federal court process designed to help both consumers and businesses eliminate or repay their debts under the protection of bankruptcy court. The federal law in Title 11 of the United States Code governs New Jersey bankruptcy as well as all other bankruptcies. Bankruptcies are generally described as either liquidation or reorganization. Here we will discuss the reorganization, repayment or Chapter 13 bankruptcy.
What is a Chapter 13 Bankruptcy?
Chapter 13 is a reorganization or repayment bankruptcy that allows the debtor to enter into an interest-free debt repayment plan to pay back all or some of the debtor's debts over a 3 to 5 year period. During this time, creditors must abide by the plan and are not permitted to collect from you or contact you.
One crucial aspect of a Chapter 13 bankruptcy is that you must have regular income for you will be required to pay both your monthly living expenses and a repayment to the court for your consolidated debts.
A Chapter 13 bankruptcy is very powerful because it provides a mechanism for debtors to prevent foreclosures and sheriff sales and stop repossessions and utility shutoffs while catching up on their secured debt.
How can Chapter 13 Bankruptcy help you?
- Stop Foreclosure and Sheriff Sales
Is your home currently in foreclosure or have you received notice of an impending sheriff's sale? Filing a Chapter 13 bankruptcy will stop the foreclosure or sheriff's sale any time prior to the sale of teh house. The Chapter 13 filing will allow you to pay your mortgage arrears through the bankruptcy directly to your mortgage company.
- Stop Creditor Harassment
Are creditors calling you at home and at work? Are they contacting your friends and family members? Put an end to your creditor harassment by speaking with one of our New Jersey bankruptcy lawyers. Once you retain our office, you will be able to refer your creditors to us. The creditor harassment will stop immediately. Under some circumstances, this creditor harassment may be in violation of the Fair Debt Collection Practices Act (FDCPA) and you may have cause for further action.
- Stop Repossession
Are you behind on your automobile payments? Are you in fear that your car is near repossession? A chapter 13 bankruptcy can help save your car and stop the finance company from moving forward with repossession. Contact one of our New Jersey bankruptcy lawyers today and they can help you consolidate your past due payments as well as the balance on your car loan into the Chapter 13 bankruptcy. You will make one payment to the trustee and the finance company will not be able to move forward with repossession. Under some circumstances, our New Jersey bankruptcy lawyers may even be able to recover your car after repossession and consolidate the balance of your car loan.
- Prevent Utility Shutoffs
Worrying about utility shutoffs? Filing a Chapter 13 bankruptcy can stop creditors from shutting off your utility service. Contact one of our New Jersey bankruptcy lawyers today to prevent a disruptive utility shutoff before it's too late. We have three offices in New Jersey to serve you better.
- Eliminate Debt
Debts like credit cards, pay-day loans, medical bills, law suits, utility bills, repossessions or foreclosure deficiencies can be eliminated for a fraction of what you owe.
Call on the experienced New Jersey bankruptcy lawyers at Lee M. Perlman for your chapter 13 bankruptcy.