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Chapter 13

Chapter 13

A Chapter 13 bankruptcy allows you to restructure your debts so that you can begin rebuilding your credit and regaining financial solvency. I will evaluate your case and determine whether Chapter 13 bankruptcy is appropriate in your case.

Chapter 13 is designed to allow consumer debtors to repay only the amount of unsecured debt that they can reasonably afford to repay over a three to a five-year term. Chapter 13 may be appropriate if you do not qualify for Chapter 7 bankruptcy, or if you owe arrearages on a mortgage and would like to keep your home, or if you have a small business and need to restructure your business debt. Chapter 13, bankruptcy is not available to corporations or limited liability companies.

A significant advantage of Chapter 13 is that in some circumstances, it is possible to “lien strip” a second mortgage or home equity line of credit if the value of your house has declined so that your home is worth less than you owe on the first mortgage. When a second lien is stripped, the claim is included as unsecured debt in your Chapter 13 case so that if you make it through a three to a five-year repayment plan, the balance of your unsecured debt is discharged (including the “stripped” lien).

If you decide to proceed with a Chapter 13 bankruptcy, I will handle your bankruptcy case from start to finish. Remember, we are here to help you out!