To qualify for a Chapter 13 bankruptcy filing, you must have assets, value to your home, and/or earn above the average income for a family in the New York county you live in. But with this, you will be offered certain protection by the New York bankruptcy court all while renegotiating repayment terms. Continue reading to learn how Chapter 13 bankruptcy can be used to negotiate better repayment terms and how an experienced Rockland County Chapter 13 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you with this.
How can Chapter 13 bankruptcy be used to negotiate better repayment terms?
In exchange for protecting your assets, the New York bankruptcy court asks that you submit a repayment plan. This plan should show how you intend to repay your debts over the course of three to five years.
This can be of benefit to you because you may not be able to currently keep up with, for instance, your monthly mortgage payments and automobile payments. But you may be able to negotiate better repayment terms that better align with your current income and expenses. This is so that you can comfortably pay these off slowly in a three- to five-year span, all while relieving yourself from the worry of losing your assets.
Most importantly, in your repayment plan, you must include a strategy in which you are going to repay your unsecured debts. Such unsecured debts may include the following:
- Your medical bills.
- Your personal loan debt.
- Your credit card debt.
- Your car loans.
- Your student loans.
- Your child support payments.
- Your income taxes.
- Any compensation ordered by the New York criminal court.
- Any civil judgment ordered by the New York court.
- Any debts incurred by fraud.
What else does Chapter 13 bankruptcy offer?
In addition to the opportunity for negotiating better repayment terms, Chapter 13 bankruptcy will offer the Automatic Stay. This system is enforced by the New York bankruptcy court and prohibits creditors from partaking in any collection activities against you. More specifically, creditors will no longer be able to send your collection letters, give you collection calls, repossess your assets, place restraints on your bank accounts, or serve you with a lawsuit during this time. Overall, the Automatic Stay provides additional relief while you work through your three- to five-year repayment plan.
So, for more information, you must consult with a skilled Rockland County bankruptcy attorney. First, we will help you determine whether you qualify for a Chapter 13 bankruptcy filing in the first place. Then, we will help you determine whether you are setting up your repayment plan correctly. We look forward to working with you.
