How a Debtor’s Reorganization Can Help You Get a Fresh Start
You’re struggling to make ends meet and have been considering filing for bankruptcy protection. You’ll generally have a couple of options—the discharge of debt through a Chapter 7 filing and the restructuring of your obligations under Chapter 13. Why would you choose a Chapter 13 petition over Chapter 7? What benefits are available under Chapter 13?
Keeping Your Property
The most compelling reason for opting for Chapter 13, rather than Chapter 7, is that you’ll be able to keep all your property. With a Chapter 7 filing, the tradeoff for permanently discharging your debts is the requirement that you relinquish non-exempt assets to the bankruptcy court, to be sold to satisfy your creditors. When you file under Chapter 13, your property will never be in jeopardy. You’ll keep all of your asset, typically with reduced principal and interest payments.
You’ll Have the Benefit of the Automatic Stay
Regardless of the type of bankruptcy you file, you’ll be free from harassment by creditors for the entire period of your bankruptcy. With a Chapter 13, that means that, as long as you stay current with your reorganization plan, your creditors cannot call you, send you threatening letters or emails, or file any legal action against you, other than through the bankruptcy proceeding. That typically means five years of relief from creditors.
You’ll Have Debts that Are Manageable
Pursuant to filing for protection under Chapter 13, you’ll submit a reorganization plan, which must be approved by your creditors and the bankruptcy court. If the court doesn’t believe that you can meet your obligations under a proposed plan, the plan will not be approved. Accordingly, your creditors must work with you to formulate a workable plan.
Contact Attorney Howard N. Sobel
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation.Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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