Filing Chapter 13 Bankruptcy: Advantages for Brooklyn HomeownersTuesday, March 24th, 2015, 5:56 pm
When filing bankruptcy in Brooklyn, Chapter 13 offers many benefits to homeowners, such as
reducing mortality rates or delaying or even preventing foreclosure, allowing you to stay
in your home. With the help of a Brooklyn bankruptcy lawyer, filing Chapter 13
bankruptcy will allow you to pay off your debts through a court supervised repayment
One disadvantage for those who file Chapter 13 Bankruptcy is that you can expect to pay more in attorney fees because the process is a lot more complicated than a traditional Chapter 7 Bankruptcy case. Another downside: The entire Chapter 13 bankruptcy process range from three years up to five years. The reasoning behind the length of time is that you are responsible for making regular payments to the trustee for a specified length of time. Depending upon where your income falls in line, the period of time is going to vary.
When filing for Chapter 13 bankruptcy, you are automatically protected by an “automatic
stay,” which forces lenders to cease all efforts to foreclose the home. The automatic stay
allows you to stay in your home until the bankruptcy is finalized, which can be up to five
The repayment plan proposed when you file for Chapter 13 bankruptcy allows you to
include back mortgage payments so you can get back on track to getting out of debt. The
repayment plan also prioritizes secured creditors over unsecured creditors, so paying off
your property debts take a higher priority than credit card debts or education debts. This
kind of repayment plan allows you to focus on your secured debts without the added
stress of paying off any unsecured debts. Furthermore, Chapter 13 may be able to reduce
the amount of automobile debts, even though it is not an unsecured debt.
If you are struggling financially, filing for Chapter 13 bankruptcy might be best for you
and your family. A Brooklyn bankruptcy lawyer can help you understand how Chapter 13
can get you back on your feet.
For questions about automatic stay and bankruptcy repayment plans, please contact an
helped hundreds of individuals discharge their debts by providing our clients with expert
protection against Chapter 7, Chapter 11, Chapter 12, and Chapter 13 bankruptcy for
more than a decade.
Category: Chapter 13 Bankruptcy