Chapter 13 Bankruptcy
Raleigh personal reorganization lawyers
Chapter 13 is officially called "Adjustment of Debts of an Individual with Regular Income." Chapter 13 is most appropriate (as compared to chapter 7) in the following circumstances:
- You use the power available in chapter 13 to "cure" (catch-up) back payments on a mortgage or car loan to stop a foreclosure or repossession
- You use the power available in chapter 13 to reduce the amount you have to pay to keep your car when you are "upside down" on the loan or you have a high interest rate.
- You have a non-exempt asset (house, car, second home, boat, etc.) that you do not want to have sold in a chapter 7, so you file chapter 13 and "buy back" the asset with your chapter 13 plan payments. (You are essentially paying your general unsecured creditors what they would have received had the subject property been sold in a chapter 7 but over a 3 to 5 year plan.)
- You earn too much money to qualify for a chapter 7 under the "means test".
Filing Chapter 13 bankruptcy in Raleigh, NC
If you need help with bankruptcy, contact The Brewer Law Firm today. We offer you the highest quality legal services in a compassionate, confidential, and cost-efficient manner.
