Can Chapter 13 Bankruptcy Resolve All My Debt Issues?
Depending on the many details of your current situation — including the type of debt you have and your commitment to working with creditors to repay your debt — Chapter 13 can potentially resolve all debt issues. However, understanding how Chapter 13 can help you resolve your debt issues requires an understanding of the rules and processes involved for this type of bankruptcy filing.
The United States Courts also refer to Chapter 13 as a wage earner’s plan because it permits individuals with regular incomes to develop plans for full or partial debt repayment, typically by extending the loan terms over three to five years. These plans can address many debt issues — including collateral-backed (secured) debt other than the primary residence — by extending the payments over the life of the plan. Additionally, filing for Chapter 13 bankruptcy can stop foreclosure proceedings on your home by developing a plan to make delinquent mortgage payments over time while additionally making on-time mortgage payments.
However, filing for Chapter 13 may not be the best solution for your particular financial situation. For example, if your only debt issue involves an underwater mortgage in Queens, an experienced Chapter 13 attorney may recommend alternative options, such as taking advantage of one of the federal programs recently introduced that help you refinance your mortgage or otherwise address issues raised during the recent economic downturn.
The Mark E. Cohen, Esq. in Queens conducts a thorough analysis of your specific circumstances and your personal preferences to help you make an educated decision when choosing the most appropriate debt relief option for you.