CHAPTER 13 BANKRUPTCY LAWYER IN BUCKS COUNTY
TAKE CONTROL OF YOUR FINANCES THROUGH CHAPTER 13 BANKRUPTCY
In many cases, a Chapter 13 bankruptcy is an ideal way to resolve all of your financial issues with an affordable consolidated monthly payment. For many people with steady income, who cannot qualify for Chapter 7 bankruptcy, Chapter 13 bankruptcy offers a debt relief option without losing assets that reduces monthly debt payments and allows them to take back control of their finances. If you are overwhelmed by debt and need financial help, a Chapter 13 bankruptcy may be right for you.
If your home mortgage lender is threatening or has initiated a home foreclosure action, the Law Office of Michael Schwartz can discuss the best way to handle your situation. If you are trying to stay in your home, a Chapter 13 bankruptcy may be an ideal solution that stops foreclosure, forces the mortgage company into a payment plan to resolve arrears, and allows you to resume regular monthly payments again to your mortgage company. In addition to helping with mortgage arrears, filing a Chapter 13 bankruptcy often reduces your monthly payments on other debt (like credit cards, personal loans and medical bills). By lowering the payments on unsecured debt, you can better afford to pay your mortgage obligations. Michael Schwartz is Chapter 13 bankruptcy lawyer in Bucks County. He also has offices in Delaware County, PA.
USING CHAPTER 13 BANKRUPTCY TO RESOLVE TAX LIABILITIES AND CREDIT CARD DEBT
Besides curing arrears on your secured debt, like a mortgage or car loan, filing for Chapter 13 bankruptcy will allow you to resolve your tax liabilities and credit card debt through a Chapter 13 reorganization plan. Depending upon several factors, such as the age of the tax years due, amounts owed to the IRS or PA Department of Revenue, your assets, family size, and disposable income, a Chapter 13 bankruptcy may be able to affordably resolve tax liability. Another benefit to Chapter 13 is that the penalties and interest on the taxes will stop once your case is filed. This allows your payments to be paid off much more efficiently and rapidly within a Chapter 13 plan. Your new payment plan, if approved by the court, will allow you to pay your debts more affordably and will give you a chance to get back on your feet.
You will be required to begin making payments to cure arrears on your loan(s), taxes and other debts to the Chapter 13 bankruptcy trustee 30 days after the bankruptcy filing and every month thereafter during the repayment plan. You are also required to resume regular monthly mortgage payments after the bankruptcy filing beginning with the next payment due after filing the Chapter 13 bankruptcy case.
THE BENEFITS OF FILING CHAPTER 13 BANKRUPTCY
In addition to home foreclosure protection and the establishment of a workable payment plan that saves people money, a Chapter 13 bankruptcy may also be able to stop:
- Harassment by creditors - once the Chapter 13 bankruptcy is filed, creditors must stop collection practices including phone calls, letters and lawsuits
- Wage garnishments - if wages are being garnished by a creditor, the filing of a Chapter 13 will stop the garnishment.
- Frozen bank accounts - once Chapter 13 bankruptcy is filed, the Law Office of Michael Schwartz will take action to release a levy on a bank account
- Car repossessions - a Chapter 13 bankruptcy will prevent the car from being repossessed and force the car lender into a payment plan to cure any arrears. Action can even be taken to have the car returned after it is repossessed, so long as the bankruptcy case is filed before the car is sold at auction
- Sheriff sales and mortgage foreclosure - a Chapter 13 bankruptcy is typically an ideal way to stop a foreclosure and sheriff sale of your home. In many cases, the Chapter 13 will create a plan for payments to the mortgage company to cure the existing arrears
- Tax sales - if real estate tax is left unpaid, the tax claim bureau will schedule a tax sale of the home. Chapter 13 bankruptcy will stop the tax sale and allow for a payment plan to get back on track with the real estate taxes
- IRS debts - the Law Office of Michael Schwartz can create a plan to resolve IRS debt through Chapter 13 bankruptcy. In many cases, Chapter 13 bankruptcy will reduce the liability owed to the IRS and prevent future interest and penalties from accruing
THE CHAPTER 13 BANKRUPTCY PROCESS
Your lawyer will prepare a Chapter 13 bankruptcy petition that will contain information regarding your assets, income, expenses and creditors. The petition will also contain your Chapter 13 Plan. This plan is a proposal on how your debt will be resolved through the bankruptcy. The plan will present your monthly payment, length of payments and how the payments will be disbursed to creditors to resolve the debt.
After the case is filed, a Trustee will be appointed to oversee your case. You will be making monthly payments to this Trustee beginning 30 days after the case is filed. In turn, the Trustee will disburse the funds in accordance with the Chapter 13 plan.
All creditors listed in the Chapter 13 petition are sent claim forms. For the creditor to get paid, they will need file claims, letting the Court know exactly how much money is owed. The Chapter 13 plan must be consistent with the claims filed by the creditor in order for the case to be approved.
A 341 Meeting of Creditors will be scheduled by the Trustee. At the meeting, the Trustee will meet with you and your lawyer to make sure that the payment proposed in the Chapter 13 plan is appropriate based upon the particular circumstances of your case.
Once it is determined that your plan will pay creditors the required amounts based on the bankruptcy rules, the Trustee will recommend confirmation of your case. If the case is confirmed, your payment is set for the remainder of the payment plan. Upon completion of your payments, the Judge will issue a Chapter 13 bankruptcy discharge.
Contact Michael Schwartz to schedule a free consultation to discuss your Chapter 13 bankruptcy options in one of his Bucks County offices. Michael Schwartz is a bankruptcy lawyer with offices in Southampton, Havertown and Perkasie PA. He serves all of Bucks County and Delaware County. Contact him at 215-396-7900. Make Michael Schwartz your bankruptcy lawyer near me!