Entering into Chapter 13 bankruptcy can be a positive step for many individuals. It can help them to pay off their debts and start over. The process is intimidating and confusing to many people, so Philadelphia attorney William D. Schroeder Jr. presents answers to three common questions on the subject of Chapter 13 bankruptcy.
- Which Debts am I Not Able to Discharge Under a Chapter 13 Case?
While it is important to recognize the benefits that Chapter 13 bankruptcy can afford some Philadelphia residents, an attorney can explain which types of debts filers are unable to discharge under this process. Some examples are:
- Mortgage Debt if you are keeping your home (but it might get modified or a second mortgage eliminated)
- Any debts related to alimony or child support.
- Tax debts owed by the individual from the previous three years.
- Some debts due to creditors who were unaware of the Chapter 13 proceedings.
In individual cases, a Philadelphia Chapter 13 bankruptcy attorney will be able to help create a payment plan for these debts in accordance with bankruptcy law.
- What are the Leading Benefits of Chapter 13 Bankruptcy?
- There are a number of advantages that Chapter 13 bankruptcy holds over other forms of bankruptcy. For example, one of the most common benefits is the opportunity to prevent a home from going into foreclosure. When a person files for bankruptcy, the foreclosure or even sheriff sale can be put on hold while the filer’s financial situation is ironed out. The filer’s attorney will generate a plan with payments the mortgage company must
- The payment plan for a Chapter 13 bankruptcy is based upon certain standards and it only lasts for 3-5 years. After the term is over, the rest of the debt is forgiven and the filer is able to get a fresh start.
- Homeowners can also modify or remove second mortgages through a process known as “lien stripping,” under Chapter 13. It is a tool by which homeowners convert second mortgages to unsecured debt (like credit card debt); the lien can be removed and discharged.
- How Do I Begin a Chapter 13 Bankruptcy?
The best way to initiate a Chapter 13 bankruptcy process is with the full support of a qualified Philadelphia attorney. An attorney will help clients complete all of the paperwork involved in the process and inform them of their obligations and rights. He will also guide them through the challenges they face as part of the proceedings and protect them against exposure to legal issues further down the road.
If you are considering filing for bankruptcy in Philadelphia, it is important to locate a qualified Chapter 13 bankruptcy attorney. William D. Schroeder Jr. has over 30 years of experience helping people. He will answer your questions and help you get the best possible result. For a 30 minute $50 consultation, call 215-822-2728 or visit the website at www.jrlaw.org.