CHAPTER 13 RESTRUCTURES YOUR DEBTS AND GIVES YOU TIME TO PAY THEM

Chapter 13 Bankruptcy provides protection from creditors and allows the Debtor time to pay his debts.  If you are struggling with debt problems, a Chapter 13 Bankruptcy will allow you to:

Stop Creditor Harassment – Creditors are relentless. They call constantly and send harassing letters.  They call your employer, family and friends.  They even threaten to file suit dragging you through the court system.  Bankruptcy may be the answer. When you file bankruptcy, all collection efforts must stop.  You can put an end to the harassing phone calls, letters and threats.

Stop Home Foreclosure – Mortgage lenders are filing more foreclosure suits than ever.  If you aren’t=t paying your mortgage the lender will surely seek to foreclosure your mortgage and take your home.  You and your family may be forced to move quickly.  However, a Chapter 13 can stop the foreclosure, give you time to catch up the past due payments and save your home.

Stop Repossessions – Automobile lenders are repossessing vehicles at a faster pace than ever.  A Chapter 13 allows the Debtor time to catch up the past due payments and may even reduce the amount due to the lender.

Eliminate Second Mortgages – Second mortgages and other junior mortgages may be stripped off and eliminated through a Chapter 13.  The drastic fall in home values has wiped out the mortgage holder=s equity in many second mortgages and other junior mortgages.  A Chapter 13 may allow these mortgages to be stripped off and eliminated.  The creditors would then be treated as an unsecured Creditor and, in many cases, only be paid a small fraction of the amount otherwise owed.

Restructure Most Debts – Credit cards, medical bills, loans, utility bills, and most other debts are restructured and paid over time through one monthly payment.

Stop Lawsuits and Wage Garnishments – Creditors who are unable to collect debts through collection letters or harassing collection calls often resort to lawsuits and wage garnishments to collect debts involuntarily.  Court appearances and wage garnishments are embarrassing at best.  The creditors take your hard-earned money to pay the bills you can no longer afford.  They make it harder for you to pay all your other bills with what little income is left.  You can stop lawsuits and garnishments immediately by filing Chapter 13.  Your debts will be restructured and you will be able to pay those debts with one monthly payment.

Stop IRS and Other Tax Collections – If you owe taxes you know that the IRS is a persistent creditor.  The IRS will take your future tax refunds, garnish your wages, levy on your bank account and put liens on your property.  Contrary to common belief, often times taxes can be discharged in bankruptcy.  Don=t let the IRS take your money needlessly.  A Chapter 13 will stop the IRS action and allow you to pay over period of time with one monthly payment.

Prevent Further Late Payments and Penalties – Creditors thrive on charging late fees and penalties.  However, in a Chapter 13 the creditors can no longer add on these fees and costs saving the Debtor substantial sums of money.