Being in a position where you are unable to pay bills such as your mortgage, car payment and property tax can be terrifying. It seems that once you are late it snowballs out of control almost immediately. As frightening and stressful as this experience is it is important to know that you do have debt relief options that will prevent you from losing your home, car and other assets. If you would like to learn more about your debt relief options to you should connect with a Philadelphia Chapter 13 bankruptcy lawyer at Perloff Law, P.C. We represent those struggling with seemingly insurmountable debt throughout the Philadelphia, Pennsylvania area.
If you want to keep certain assets or property filing a Chapter 13 bankruptcy may be the right choice for you. A Chapter allows you to consolidate debt and repay over a 3 to 5 year time period.
Chapter 13 bankruptcy provides debt relief for:
- People with severe arrears on a mortgage who wish to avoid foreclosure
- Those whose income is too high to qualify for Chapter 7 bankruptcy
- People with child support arrears
- People with spousal support arrears
By filing a Chapter 13, your attorney and the bankruptcy trustee will negotiate a repayment plan to repay a portion of your debts over a period of 3 to 5 years. The payments are based upon your disposable income after household expenses and the type of debt owed. You will make monthly payments for 36 to 60 months. After that, any remaining debts are discharged and you are in the clear. A common misconception about filing Chapter 13 bankruptcy is that you will lose everything and nothing could be further from the truth. Upon filing foreclosure proceedings, repossessions, or other collection actions are immediately stopped and your creditors must cease contacting you.
This means that creditors cannot call your home, harass you or threaten lawsuits. In addition, you will not forfeit any assets or possessions provided you qualify. In 2005, Congress instituted a bankruptcy means test. If you earn more than the Pennsylvania median income, you may be required to file for Chapter 13.
Although you must make payments, most Chapter 13 repayment plans settle your debts for a fraction of the total you owe. To learn more about your options for obtaining financial relief contact Philadelphia Bankruptcy Attorney Brandon Perloff. You can also visit @philadelphiabankruptcylawyers