If you’ve decided to take control of your financial future, you face several decisions. However, it’s essential to realize that you are not alone in your battle with substantial debt. Individuals, families, and businesses across the country are feeling overwhelmed by financial debt, especially in the wake of the pandemic. As you explore your bankruptcy options, you may wonder which option allows you to retain possession of your home. Here’s some information on why filing a Chapter 13 bankruptcy in Central New York and the North Country may be the most strategic option for achieving this goal.
Why Choose Chapter 13 Bankruptcy Relief?
Many people struggling with large amounts of debt wonder whether a Chapter 7 or Chapter 13 bankruptcy works better for them. While a Chapter 7 bankruptcy tends to move quickly, homeowners may find that a Chapter 13 bankruptcy filing best serves their interests. Under a Chapter 13 bankruptcy filing, you gradually pay back a percent of your unsecured debt (over a three to five-year period) while remaining in possession of your house, car, and other valuable assets. You also have up to five years to pay back mortgage arrears, back property taxes or income taxes while avoiding a foreclosure and lawsuits. At the end of the repayment period, the court will discharge (wipe away) the remaining debt and allow you to obtain the fresh start you need.
Stopping a Foreclosure Through a Chapter 13 Filing
There are a few advantages to filing for Chapter 13 bankruptcy relief. According to the New York City Bar, “Chapter 13 bankruptcy allows you to keep your property and continue making payments on any loans or other debt you have. It also gives you the chance to save your home from foreclosure, because it allows you to stop foreclosure proceedings and catch up on any past due payments over time in your repayment plan.” Your home will remain under your control as long as you can keep up with your payments under your repayment plan.
Compassionate Legal Guidance When You Need It
Struggling with large amounts of debt can be debilitating and stressful. It’s natural to feel trapped and paralyzed by your debt, but there are options to help you regain control of your financial situation. Whether you are just starting to explore your debt-relief options or you need help initiating a bankruptcy filing, working with a skilled and compassionate Central New York bankruptcy attorney is the best way to move forward with greater clarity and confidence.
