Dealing with overwhelming debt is never easy. For many people, years of being unable to avoid creditors or pay their bills takes an emotional toll. The good news is that you could receive a fresh financial start with the help of a Freehold Chapter 13 bankruptcy lawyer.

If you have a source of income but are still struggling to pay your bills, Chapter 13 might be right for you. While this path can take 3-5 years to complete, it can also allow you to remain in your home and keep some of your assets while addressing your debts. A skilled bankruptcy attorney from Gillman, Bruton & Capone can assist you every step of the way and determine if there are other alternatives to your financial concerns before considering a bankruptcy plan.

Why Choose Chapter 13 Bankruptcy?

Chapter 13 bankruptcy offers many potential benefits that could put you on solid financial footing for years to come. An attorney in Freehold can help you secure the following benefits that come with a Chapter 13 filing.

Consolidated Payments

One of the most frustrating aspects of dealing with creditors is juggling numerous payments and due dates. While the Chapter 13 bankruptcy plan is in place, debtors make a single monthly payment to the trustee who distributes it to qualifying creditors. This dramatically simplifies the process of paying monthly expenses.

Keeping the Family Home

The threat of home foreclosure is often one of the primary reasons people file for bankruptcy protections. During an active Chapter 13 case, a debtor could keep their home even if they are behind on their mortgage. It is important to understand that the monthly payment to the trustee will include not only the ongoing mortgage note but also a portion of the arrears. The goal is to be caught up on the day you get your discharge.

Keeping a Vehicle

Costly vehicle notes are a common cause of financial stress. Due to the way cars and trucks depreciate quickly, it is often difficult, if not impossible, to sell a vehicle at a price that will cover the full value of the loan.

There are options for dealing with these debts. First, the automatic bankruptcy stay puts a halt to efforts to repossess the vehicle. Second, it may be possible to negotiate new loan terms or even pay back the remaining market value of the car instead of the loan balance. Our Chapter 13 bankruptcy lawyers can talk to a client in Freehold about what financial options may be possible under a Chapter 13 plan.

Qualifying for Chapter 13

Not all debtors qualify for protection under Chapter 13 of the bankruptcy code. That said, this option is generally available to more people compared to liquidation bankruptcy under a Chapter 7.

First, an applicant must be caught up on their tax filings. This includes federal and state returns covering the previous four years. The court has the power to postpone these proceedings to allow an applicant to get these records together, but it is a good idea to have them prior to filing.

Applicants must also have some form of disposable income. The idea behind a Chapter 13 bankruptcy is that the debtor pays back some of their debts before anything remaining is discharged. An attorney in Freehold will advise a person if they meet the requirements for a Chapter 13 bankruptcy.

Talk to a Chapter 13 Bankruptcy Attorney in Freehold About Your Future

Dealing with crushing debt can be difficult, especially when there is no one to advise you on how to manage it. While there are options for getting out from under these obligations, it is important to have the right attorney on your side – not a debt management company. Reach out to our team as soon as possible for a free case consultation to discuss your options and learn if a Freehold Chapter 13 bankruptcy lawyer can help.