Severe debt is an economic condition that can affect anyone, and individuals and couples may run into a variety of scenarios that make it impossible to pay their bills. You may find yourself tied to a loan on a vehicle or underwater with arrears on a mortgage. In other situations, a sudden medical emergency or critical need for a home repair could leave them in tens or hundreds of thousands of dollars in debt. They may also be sole proprietors of struggling businesses with finances intertwined in personal guarantees.

If this describes your own situation, we have a Chapter 13 bankruptcy lawyer located in Edison who is here to help. The experienced bankruptcy attorneys from Gillman, Bruton & Capone can explain the Chapter 13 bankruptcy process, including what the plan of reorganization looks like, and determine if it is in your best interest to follow through. If a Chapter 13 bankruptcy makes sense for you, our lawyers are prepared to work with you to prepare your petition, file it, and ensure that you have the guidance you need to follow through with your court-mandated plan of reorganization.

When Might a Chapter 13 Bankruptcy be Advisable?

The objective of a Chapter 13 bankruptcy is to obtain a discharge for much of your debt by reorganizing and repaying your debt. In addition, simply filing a petition for Chapter 13 bankruptcy protection will result in the court issuing an automatic stay on all current and future collection efforts until your case is completed. This pause on collections and any related legal actions can allow you to gain control back over your finances and make a more financially sound plan for the future.

In fact, Chapter 13 bankruptcy cases operate on the premise that a person will be more responsible with their future finances. This is because Chapter 13 bankruptcy places debtors on a plan of reorganization that takes place over 3-5 years. If a person makes these payments as scheduled, the court will discharge their eligible listed debts.

In some Chapter 13 bankruptcy cases, a person or married couple could alleviate the pressure of paying minimum credit card payments and high rates of interest and create a plan to be out of debt in 3 to 5 years. The monthly payment is typically much lower than minimum payments on any credit card account and for a lot less time.

An important question to ask yourself when considering a Chapter 13 bankruptcy is whether you will be able to make these payments. In light of the above, our Chapter 13 bankruptcy attorney in Edison recommends this option only when you or your family have a steady source of income. Consulting with an attorney could help you determine if Chapter 13 is the right bankruptcy option for you.

Important Legal Concepts When Filing for Chapter 13 Protection

If you are seeking protection through a Chapter 13 bankruptcy, it is important to get started right away as time is of the essence. Merely filing a petition with the court requires you to fully understand your finances and what debts you are asking the court to discharge. In fact, federal law requires the inclusion of a complete financial disclosure package in order for any bankruptcy petition to move forward. Obtaining this information is the first way in which our Edison Chapter 13 bankruptcy lawyer can provide assistance to you.

As mentioned earlier, another key aspect of a Chapter 13 bankruptcy case is the preparation and filing of the Chapter 13 plan of reorganization. The law allows debtors and their attorneys to suggest a potential plan to cure a debtor’s arrears to the court. This could result in a plan that is shorter in duration, such as a three-year plan, or one that requires monthly payments in a lower amount over five years. We will be transparent about which plan makes the most sense for your financial situation.

Learn How Our Edison Chapter 13 Bankruptcy Attorney is Ready to Fight for You

Individuals, couples, and the owners of small businesses who are facing significant financial trouble can be subjected to ceaseless collection efforts, threats of repossessions, and even lawsuits and judgments to collect on a debt. If you find yourself in significant debt filing for a Chapter 13 bankruptcy may be your most effective plan.

Filing a bankruptcy petition may not only result in the discharge of your debt, but it will always result in the granting of an automatic stay against any collection efforts until your case is finished. The filing of a Chapter 13 bankruptcy petition addresses your debts through the creation of a Chapter 13 plan of reorganization that allows you to regain financial stability. Consult with our Edison Chapter 13 bankruptcy lawyer today. With over 30+ years of experience, our attorneys are available through various means of communication and are dedicated to helping you achieve financial relief so you can move forward without being held back by your debts.