Chapter 13 is also known as “reorganization” or “consolidation.” You might choose a Chapter 13 payment plan if your income is determined to be too high for Chapter 7 relief. Or you might require a Chapter 13 payment plan if you are facing foreclosure on your home, auto repossessions or tax debts. Chapter 13 can help give you some breathing room and give you an opportunity to keep your home or other key assets while holding off creditors.
A Chapter 13 petition will also stop creditors from harassing you and it will stop foreclosure on your home or other property so long as those assets are included in your “reorganization” plan and so long as you are able to make the payments required under your plan. We will help you carefully analyze whether this bankruptcy option will work for you. If you are considering some kind of “debt consolidation” or arrangement outside of bankruptcy, it is especially important to meet with a Certified Expert in bankruptcy law first. A careful understanding of how a Chapter 13 “reorganization” will work for you is necessary to understand all your debt consolidation options.
Debt repayment plans outside of bankruptcy typically overlook key financial, legal and debt issues and frequently do more damage to credit than people realize. What’s worse is that the debt consolidation companies have a conflict of interest and they cannot give you legal advice about which plans and options are the most effective and the best suited for your legal and financial situation. So start with a free consultation with a Certified Expert in bankruptcy and compare your options honestly and thoroughly.