Chapter 13
Chapter 13 Bankruptcy Lawyers in New York and New Jersey
Chapter 13 bankruptcy is a type of consumer bankruptcy that does not erase debt, but instead reorganizes it into a more manageable, court-supervised repayment schedule.
Chapter 13 bankruptcy provides a mechanism that may help you avoid losing a home in which you have built equity but are behind on the mortgage, business tools that you cannot earn a living without, or other assets that hold value.
Because the type of bankruptcy protection you choose may affect your financial outlook for years to come, it is important to select the form of bankruptcy that best meets your needs. Consult with an experienced bankruptcy lawyer with the knowledge to advise you and answer any questions you may have.
The Kridel Law Group: New York City and Clifton, New Jersey
The bankruptcy lawyers of The Kridel Law Group are well versed in bankruptcy law and the New York and New Jersey rules that may apply to your situation. Our powerful team of experienced attorneys provides our clients clear advice about their rights and options. Before we recommend Chapter 13 bankruptcy or another debt relief option, we will conduct a thorough review of your financial circumstances so that we may confidently advise you of the best course of action to take in your particular case.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is sometimes known as a debt consolidation bankruptcy. Chapter 13 bankruptcies are usually more complicated than Chapter 7 bankruptcies, because they require the debtor to present to the court a plan to repay most — if not all — of his or her debts. The debtor must also show that he or she has a steady source of income that is sufficient to make the payments suggested in the repayment plan.
Unlike in Chapter 7 bankruptcy, a Chapter 13 filer does not have to pass a debt-to-income ratio "means test." Even so, filing a Chapter 13 bankruptcy has many of the same benefits as filing a Chapter 7, such as stopping creditors from making contact with the debtor in collection efforts and halting repossession attempts.
Chapter 13 bankruptcy may be an excellent tool to avoid home foreclosure. Furthermore, all past-due bills will no longer be assessed interest or late charges. This provision even includes debts owed to the IRS and unpaid balances on student loans.
Contact The Kridel Law Group
Contact a Chapter 13 bankruptcy lawyer at The Kridel Law Group today and discuss your bankruptcy, foreclosure and debt consolidation issues. We have offices located in both Clifton, New Jersey, and in New York City.
