Chapter 13 Bankruptcy

By Jacoby & Jacoby  May. 28, 2010 5:37p

About Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is typically a good option for a Long Island debtor who has a steady income and property or assets that may not be protected under a Chapter 7 bankruptcy. Under Chapter 13 of the U.S. Bankruptcy code, a debtor essentially works out a repayment plan that lasts approximately 3 to 5 years and makes a monthly payment to a bankruptcy trustee who dispenses money to creditors accordingly. Upon the completion of a Chapter 13 repayment plan, all remaining debt will be discharged.

Chapter 13 bankruptcy has many benefits for a debtor, and a Long Island bankruptcy attorney at Jacoby and Jacoby can help you understand all of these. Our attorneys are highly experienced and are here to help you with your case. We offer a free consultation to discuss what can be done to address your foreclosure, debt, repossession or other financial situation.  We represent clients throughout Long Island and have more than five decades of combined experience to apply to your Chapter 13 case.

One specific benefit that Chapter 13 bankruptcy can offer is the ability to include past due mortgage payments, taxes, child support or other secured debt in your repayment plan. This type of debt is given a higher priority than other unsecured debt, such as credit card bills or personal loans. What does this mean for a debtor? It means that a Chapter 13 bankruptcy may help with secured debt as well as unsecured debt, something a Chapter 7 filing simply cannot do. It also means that a Chapter 13 bankruptcy is typically more effective in stopping foreclosure.

Contact a Bankruptcy Lawyer in Long Island

Find out more about what a Chapter 13 bankruptcy can do to help you get a fresh start financially by reorganizing your debt. For a free, confidential consultation, contact a Long Island Chapter 13 bankruptcy lawyer at our law firm today.