Do I need to File a Chapter 7 or 13?

        Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over 3 to 5 years. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments.  Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors - certain debts must be paid in full while unsecured debts can receive as little as 0% of what you owe them through your plan. Individuals will have no direct contact with creditors while under chapter 13 protection.  Finally, you may be able to "strip off" an unsecured second mortgage on your home and treat it like your other unsecured debts.

If it looks complicated, it is because it IS complicated.  Call for a free consultation with the attorney today.

Filing Procedures under the New Bankruptcy Code
(Effective October 17, 2005)