Chapter 13 Bankruptcy
Today, more people than ever are facing insurmountable financial struggles and are unable to pay off their debts. For some, filing for Chapter 13 bankruptcy is a way to eliminate debts and start fresh financially. There are many options when it comes to filing for bankruptcy, and an experienced Massachusetts bankruptcy lawyer is the best person to help you figure out which is best for you. Attorney Rachel M. Matos is an experienced chapter 13 lawyer in Massachusetts and are here to help you navigate the complicated process of Chapter 13 bankruptcy and provide sound legal advice for your case. To learn more, call or contact us today to schedule your case consultation.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is available for individuals who temporarily cannot pay off their existing debts to creditors. It is also known as a wage earner’s plan for bankruptcy, as debts are paid off in part or in full over three to five years with an installation plan. However, in order to qualify for Chapter 13, a person must not owe more than $394,725 in unsecured debt and $1,184,200 in secured debts to creditors. In addition, a person filing for Chapter 13 must go through credit counseling within 180 days prior to filing and cannot have a bankruptcy petition dismissed within the same time frame because of a willful failure to appear.
Benefits of Chapter 13 Bankruptcy
There are many benefits to filing for Chapter 13 bankruptcy if you find yourself temporarily unable to pay your debts. First, the installment plan can restructure debt payments over a longer period of time, which can decrease the amount paid in each installment. This makes it easier for the debtor to fulfill their obligations. Second, Chapter 13 bankruptcy can allow a person to save their home from foreclosure. It creates an automatic stay on any foreclosure proceedings and allows the homeowner to pay off past-due mortgage payments over the period of their installment plan.
This type of bankruptcy also protects co-debtors who may be liable for a debt obligation along with the bankruptcy filer. This applies to any consumer debts for a personal, family, or household purpose. Finally, Chapter 13 bankruptcy automatically stops all types of collections by creditors against the debtor’s property. While Chapter 13 bankruptcy proceedings are ongoing, creditors are not allowed to continue or file new lawsuits for repayment, garnish wages, or contact the debtor to demand payment.
How a Bankruptcy Lawyer can Help
There are many advantages to hiring an experienced bankruptcy attorney to assist with your Chapter 13 filing. First, a lawyer will draft and file the necessary paperwork for your bankruptcy and represent your interests in all court hearings. Second, a bankruptcy attorney has experience with the process and will be able to advise you on what to expect as well as any risks involved with the process. Third, a lawyer will serve as a shield between you and any creditors, informing them of your bankruptcy status and negotiating repayments on your behalf. To learn more about all the services that an experienced bankruptcy lawyer can provide a client considering Chapter 13 filing, contact us today.
We are Standing By to Help You
If you are facing temporary hardships, filing for Chapter 13 bankruptcy may be the best option for your financial future. To learn more about your options for filing for bankruptcy, call the office or contact us today. Schedule a consultation of your case with an experienced Massachusetts bankruptcy lawyer now.
“We were having difficulty getting a refund from a popular company and Attorney Matos worked with us to successfully resolve our issue. She is thoughtful, professional, and follows through.”