The last few years have caused significant financial strain on individuals, families, and businesses across the country. As people face growing amounts of debt, they are starting to explore how filing for bankruptcy may help them find the relief they need to move forward. Let’s look at what Chapter 13 bankruptcy is and how it may help New York individuals and families start to rebuild their financial foundation over time.
How Chapter 13 Bankruptcy Works
When you file a Chapter 13 bankruptcy, you create a 3-5 year repayment plan to the creditors, which allows you to keep your secured assets while you gradually repay a percentage of the debt you owe. If you adhere to the repayment agreement, the remaining dischargeable debt will be wiped away when the repayment period ends. Those seeking to prevent a home foreclosure, pay back taxes, or catch up on missed car or mortgage payments often find success through a Chapter 13 bankruptcy filing.
Reasons to Consider a Chapter 13 Bankruptcy in New York
There are several reasons why people decide to pursue a Chapter 13 bankruptcy. For instance, if you do not qualify for Chapter 7 bankruptcy relief—maybe you failed the Means Test, or you earn too much income to qualify—Chapter 13 may serve your needs better. Those wishing to stop a foreclosure proceeding or repossession may choose to file for Chapter 13 bankruptcy relief so they can retain possession while gradually repaying their debt over time.
How a Skilled New York Bankruptcy Lawyer Can Help
It’s common for people to feel intimidated by the bankruptcy process. If you’re struggling with financial debt and wish to explore your options for finding relief, reach out to a compassionate bankruptcy attorney to discuss your situation. Together, you can determine the most strategic path forward to help you achieve your goals. Working with a bankruptcy lawyer is the best way to ensure you complete each step of the process and remain focused on the light at the end of the tunnel.