Chapter 13 is a different type of bankruptcy that generally allows individuals to keep all of their property if they agree to repay creditors to the extent they can afford to do so over a three to five year period. In order to qualify for a Chapter 13 bankruptcy, individuals must have regular income and their unsecured debt cannot exceed $336,900 while their secured debt cannot exceed $1,010,650.

Often times, people fall behind on their mortgage, automobile, or credit card payments due to illness, divorce, loss of work or other unforeseen circumstances. Chapter 13 allows those individuals to bounce back and save their home from being foreclosed upon, vehicles from being repossessed or wages from being garnished.

Debtors may be able to eliminate a second or third mortgage through a chapter 13 if they can prove their home is worth less than the amount owed against their first mortgage.

Regardless of the type of bankruptcy that is appropriate for you, the Wadhwani & Shanfeld, APLC will be with you every step of the way. Remember, the purpose of a bankruptcy is to provide you with a “fresh start” both to eliminate your pre-bankruptcy debt allow you to move on with your credit post-bankruptcy. In this day and age, it is possible to bounce back from bankruptcy and finance homes and vehicles shortly after the discharge. For now, know that there is certainly no shame in filing a bankruptcy and there is a light at the end of the tunnel. Remember, since biblical times, societies have discouraged debtors from “falling on their swords” when overwhelmed with debt.

Feel free to contact the Wadhwani & Shanfeld, APLC for assistance. You will be treated with the dignity and respect that you deserve from the very first phone call.