Will I lose my home and my car if I file for bankruptcy relief?
The short answer is no. It is possible to retain your home and your car when you file bankruptcy.
If you are behind on your home or car payments and wish to retain these assets, under a Chapter 13 bankruptcy you will stop a foreclosure or repossession and set up a repayment plan to bring these obligations current in 3 to 5 years.
If you are current on your home or car obligations, you may be able to eliminate your other debts and retain and pay for your home and car under Chapter 7 bankruptcy.
How do I know which chapter of bankruptcy to file?
Every person’s situation is unique. A thorough evaluation of your income and assets is necessary to determine which chapter of bankruptcy you should file. I will give you a free consultation to determine which bankruptcy option is right for you. I will need to review certain documents at our consultation. To download and print a list of the necessary documents, click here.
These consultations are totally free and usually last about an hour. After the consultation you will have a clear understanding of your bankruptcy options, the related costs, and a game plan to achieve your goals. There is no obligation to file after the consultation, and all of your documents will be returned to you.
If I cannot afford to make payments on the bills I already have, how can I afford to repay my debt under Chapter 13?
A Chapter 13 repayment plan has several advantages over debt consolidation plans outside of bankruptcy:
Under a Chapter 13 repayment plan, the interest and penalties on your credit cards and other unsecured debts is automatically stopped. Many people find themselves unable to pay on their credit cards when their limits are reduced and their minimum payments are increased. Chapter 13 stops all the interest and penalties on these cards and can even reduce the balance paid to the credit cards, even down to zero, in some cases.
Chapter 13 is not voluntary for your creditors. This means they cannot “opt out” of, or reject the repayment plan once the Court has confirmed it. Debt consolidation plans outside of bankruptcy attempt to bargain with your credit card companies to get lower rates. In Chapter 13, credit card companies do not have bargaining power and do not receive any interest or penalties whatsoever.
Chapter 13 extends your payments over a three to five year period, thereby reducing the amount you would pay otherwise.
Will Chapter 13 refinance my mortgage?
No. Chapter 13 is merely a way for people who have fallen behind on mortgage payments to bring their mortgages current in three to five years while stopping foreclosure.
Will Chapter 13 help me with my second mortgage?
Chapter 13 will enable you to bring your second mortgage current.
Is it possible to strip off my second mortgage in a Chapter 7 bankruptcy?
The United States Supreme Court ruled June 1, 2015 that there is no longer any lien stripping in either Chapter 13 or Chapter 7.