Massachusetts Bankruptcy Center | Bankruptcy Law Firm

When debt becomes so overwhelming that it starts to affect your home, income, vehicle, and even your daily life, Chapter 13 bankruptcy can offer a structured path to financial stability. An experienced chapter 13 bankruptcy lawyer can explain the protections and repayment options that may be available to you. The automatic stay in bankruptcy can stop creditor collection efforts, wage garnishments, foreclosure activity, vehicle repossessions, evictions and certain lawsuits for a period of time depending on the case. It may also offer a way to resolve qualifying credit card balances, medical bills, utility issues, and other eligible debts through a court-approved plan of repayment. Chapter 13 can also assist those with certain tax obligations, penalties, second mortgages, liens, and student loan problems, but the way those are handled depends on the type of debt and personal circumstances. But when the legal requirements are met, the bankruptcy court may provide you with specific tools ...

  Understanding how Chapter 13 works can help make the bankruptcy process feel less up in the air. A chapter 13 bankruptcy lawyer can evaluate your finances and tell you if this type of debt relief could be right for you. Chapter 13 is generally for people with regular income who need an organized way to deal with qualifying debts but want to keep eligible property. The debtor usually then files a repayment plan with the court for approval. The plan typically lasts from three to five years . The payment required is based on income , reasonable expenses , bankruptcy rules , and the kinds of debts involved . Some obligations may need to be paid in full while qualifying unsecured debts may be treated differently under the plan. As a general rule, once a plan is approved payments are made pursuant to the terms of the plan, often through the Chapter 13 trustee. The process can shield against certain collection actions and might allow qualified homeowners time to make up their mortgage ...