Reorganize Your Debts And Repay Them Manageably Through Chapter 13 Bankruptcy

The concept of "bankruptcy" does not always mean that a debtor does not repay his or her debts. It may refer to a three- to five-year debt repayment plan known as debt reorganization in a Chapter 13 bankruptcy. If you file for Chapter 13 bankruptcy in Dutchess County or elsewhere, you will have many of the benefits that any bankruptcy filer enjoys:

  • The automatic stay will prohibit creditors from attempting to collect on debts throughout the course of the bankruptcy — from the time of filing until the end of the repayment period. Remaining unsecured debts (such as portions of credit card debt) can be discharged at that time.
  • Creditor harassment will come to an end in most cases.
  • Doctor clinics, hospitals and other health care providers will not be able to put a levy on your bank account in an attempt to collect on medical bills.
  • If you were facing foreclosure, that threat may come to a halt as soon as you file bankruptcy. If you are able to keep up with a reasonable repayment plan (usually with greatly reduced interest), you may well keep your house and get your mortgage back on track without the fear of late penalties or increasing interest rates.
  • You may have the opportunity to keep your car despite car loan problems going into the bankruptcy. Depending on your individual circumstances, you may elect to let go of a boat, second car or other luxury item while getting your primary car loan back on track.

In a debt reorganization plan through a Chapter 13 bankruptcy, your legal fees will be built into your monthly payments. You will not have to come up with the full amount upfront as in the case of a Chapter 7 bankruptcy.

Three to five years may sound like a long time to get back on your feet financially, but the protections that bankruptcy offers can remove sources of stress and give you room to breathe. At the end of the repayment period, any remaining unsecured debt will ordinarily be discharged. Debt relief is attainable for many people through Chapter 13 bankruptcy.

Contact An Attorney To Explore Debt Reorganization And Repayment

Call or email The Law Office of Dena Ghobashy, PLLC, to schedule a free consultation with a New York lawyer about debt reorganization through Chapter 13 bankruptcy.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.