New Jersey Chapter 13 Bankruptcy Lawyer
Assisting Clients through the State of New Jersey
If you live in New Jersey and are facing severe financial distress, you may wish to seek professional legal help in eliminating your debt. If you are facing a mortgage foreclosure or wish to restructure debt repayment, then a Chapter 13 bankruptcy may be your best solution. We urge you to contact the New Jersey Chapter 13 bankruptcy attorney at our firm so that you can discuss your situation and be advised of your legal options and how to proceed. Our firm has been helping individuals with debt relief and bankruptcy solutions for more than 12 years and we have the experience and knowhow to help you.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is also called a wage-earner's plan. This type of bankruptcy allows you to keep your property and pay back your debts through a plan which must be approved by the Court. Under a Chapter 13, you pay a percentage of your debts through installments to your creditors over 3 to 5 years. If your current monthly income is less than the applicable state median, the plan will be for 3 years unless the court mandates a longer period. If your current monthly income is greater than the applicable state median, the plan generally must be for 5 years. In no case may a plan provide for payments over a period longer than 5 years. During this time the law forbids creditors from starting or continuing collection efforts against you.
If you are behind on your mortgage payments and want to save your home, a Chapter 13 is usually the best option. By filing a chapter 13, foreclosure proceedings will stop and you can pay any late payments and fees through your Chapter 13 plan. This also applies to any car payments that you may have fallen behind on. Once a Chapter 13 is filed, you must begin to make all mortgage and car payments in a timely fashion. For practical purposes, a Chapter 13 acts like a debt consolidation, where you are permitted to pay unsecured debts such as credit cards and medical bills at a significantly reduced amount under the plan.
To find out how your individual circumstances apply to a Chapter 13 bankruptcy, it is important that you consult with our New Jersey Chapter 13 bankruptcy lawyer about your particular case.
Contact a New Jersey Chapter 13 Bankruptcy Attorney
at our firm today if you are looking for a way to repay your debts and keep your home with a repayment plan.