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.
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.
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.
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.
Named a New Jersey SuperLawyer Every Year since 2008, Including 2023
What Steps Can You Expect When Seeking to Discharge Debts Permanently? When you’ve lost your job or had an unexpected injury or illness, bankruptcy may be the best way to get a fresh start. If you qualify, you can ask the bankruptcy court to permanently dis...
Read MoreHow Does the Bankruptcy Court Determine Whether or Not You Qualify? When you’re struggling to meet your financial obligations and have determined that a personal bankruptcy filing is your best chance for a fresh start, you may have a couple of options. If y...
Read More