Long Island Chapter 13 Bankruptcy Attorneys
Advice from experienced Long Island Chapter 13 bankruptcy lawyers
As an individual or sole proprietor in Nassau or Suffolk County, you can file for Chapter 13 bankruptcy to pay off all or part of your debts over three to five years. Rather than having a Chapter 7 bankruptcy attorney in Long Island wipe out your debts immediately, this option allows you to reorganize them so you have time to pay from your income as you earn it and are not over-burdened with heavy interest payments on top of what you already owe. This type of bankruptcy filing can work for you if you have a regular income but you need a way to catch up on past-due mortgage or car loan payments and keep your assets.
In Chapter 13, you work with a qualified Long Island Chapter 13 bankruptcy attorney to devise a proposed plan to pay all or part of your debts from future income. Once the bankruptcy court approves the plan, you must, of course, make the required payments. But as long as you make the court-approved payments on schedule, you can keep your property even if some of your creditors object to the plan.
When to choose Chapter 13
If you have too much income or assets to meet the means test for Chapter 7, Chapter 13 may be your only option. But there are additional circumstances where Chapter 13 can be a better choice. For instance, some of the debts that cannot be discharged through Chapter 7 bankruptcy can be discharged in Chapter 13. You can pay some non-dischargeable federal taxes over the term of the Chapter 13 plan without interest.
Known as the wage earner's plan or debtor's court, Chapter 13 bankruptcy may be right for you if you have regular income that surpasses your living expenses. While you are not able to pay the amount that your creditors are asking, you can afford to pay some portion of your debt on a regular basis. The circumstances where you may choose to file Chapter 13 bankruptcy include—
- You owe debts that cannot be discharged under Chapter 7, such as taxes, child support, student loans, or fraud judgments.
- You have a lien that is larger than the value of the assets securing the debt.
- You have not filed taxes over a long period of time.
- You are behind on car or house payments.
- Your assets are worth more than the available exemptions.
- You believe for moral reasons that all debts should be paid no matter how long it takes.
How a Chapter 13 repayment plan works
You make monthly payments to the bankruptcy trustee, who distributes the funds to the creditors according to the plan. If the plan is completed as approved, any unpaid debts are discharged—so you have no more responsibility to pay them. If you don't complete the repayment plan as approved, you still have several other alternatives that an experienced Long Island Chapter 13 bankruptcy lawyer or Chapter 11 bankruptcy attorney can explain to you.
Save your home. Change your life. Get a fresh start.
For effective, professional advice and assistance when considering filing for bankruptcy and throughout the process, you need an experienced lawyer who is knowledgeable about all of the provisions of the law and who genuinely wants to help. Request our free newsletter and/or sign up for our seminars using the message field on our contact form. Call our emergency legal hotline at 877-871-6179 or contact the Law Offices of Kyle Norton, P.C. online for a free consultation that could possibly save your home, change your life, and get you on track toward a fresh, new start in Long Island.
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