Bankruptcy Lawyer – Bankruptcy Law – Attorneys for Bankruptcy

Chapter 13 Bankruptcy

Bankruptcy law and cases are complex.  The key is making sure you use the bankruptcy laws correctly.  It can be a powerful weapon that can greatly improve your chances of a satisfactory result and give you a new start in life.

Chapter 13 bankruptcy is often referred to as “Individual Debt Adjustment” or a  “wage earner’s plan” (even if you are self employed) because it requires the debtor to have regular income with which to make payments on the repayment plan.  During that time, creditors are restricted from pursuing collection actions, including contacting you, filing lawsuits and other actions.  Chapter 13 is the “personal Chapter 11” bankruptcy statute that provide for a debtor’s  “reorganization.”  In essence, you eliminate some of your debt and work out a plan to make payments on the balance over a period of time.

An individual with regular income and eligible for a Chapter 13 filing may stay foreclosure proceedings, completely eliminate a second loan on their home, reduce and consolidate unsecured debt to an amount that can comfortably be paid off with their disposable income.