Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy is also called a Debt Reorganization or Debt Consolidation and is quite different from Chapter 7 bankruptcy, which is used to wipe out most of your debts. Chapter 13 bankruptcy, which is sometimes known as reorginization bankruptcy, is primarily designed to allow you to stop foreclosures and repossessions, and allows you to put together a payment plan to make up payments.
Chapter 13 Bankruptcy can also be used to consolidate credit cards, medical bills, student loans, taxes and other bills at reduced interest and principal.  That way the client can make more affordable payments over a 36-60 month period. Not everyone qualifies for Chapter 13 bankruptcy however, and some debtors would be better off filing for Chapter 7.

Many debtors choose not to file for Chapter 13 bankruptcy because it requires repayment of at least a portion of their debts. However, In some situations,  Chapter 13 bankruptcy is the better bankruptcy option. Also, keep in mind not everyone is eligible for Chapter 7 bankruptcy, so Chapter 13 will by the only option available to some debtors.

It's important to know if you have received a Chapter 7 bankruptcy discharge within the last eight years, or a Chapter 13 discharge within the last six years, you may not file for Chapter 7 bankruptcy.

For more questions regarding Chapter 13 bankruptcy and a free consultation call me at (407)894-6750.