Chapter 13: Protection to Allow Reorganization of Assets

Many people in New York and across the country who find themselves unable to pay their debts may file for Chapter 13 bankruptcy, also called “wage-earner bankruptcy,” where homes, cars and other valuable personal assets can be protected. Chapter 13 bankruptcy allows people to retain their most prized, valued possessions while striking a deal with creditors to repay all, or some, of a debt over a period of years.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy allows a debtor to protect valuable property from being lost. Under this type of bankruptcy, the debtor, a judge and creditors set up a payment plan, which typically runs from 3 to 5 years and may be at a lower interest rate. This type of bankruptcy is best for debtors who have limited debt and a steady source of income and can afford the payment plan.

Advantages of Chapter 13 Bankruptcy

One advantage to filing bankruptcy under Chapter 13 rather than Chapter 7 is that debtors can establish a workable plan to repay all or some of the debt, often on better financial terms. Another advantage is that a Chapter 13 bankruptcy stays on your credit report for only 7 years instead of the 10 years for Chapter 7.

Chapter 13 Legal Advice is Available

If you or a loved one is facing Chapter 13 bankruptcy in New York, contact Mark & Associates, P.C. today. We will advise you of your legal options and fight to achieve the best legal outcome possible. To contact Mark & Associates, P.C. for a free consultation about your potential case, call 1-866-50-RIGHTS (1-866-507-4448) or fill out the form at the right.