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Chapter 13 Bankruptcy

If you do not meet the income requirements for a Chapter 7 bankruptcy, there are still legal options for debt relief available to you. A Chapter 13 bankruptcy may be a viable solution for you and your family to regain control over your finances, allowing you to satisfy your debts and rebuild your credit simultaneously.

Chapter 13 Bankruptcy

Get the Help You Need to File a Chapter 13 Bankruptcy

If you do not meet the income requirements for a Chapter 7 bankruptcy, there are still legal options for debt relief available to you. A Chapter 13 bankruptcy may be a viable solution for you and your family to regain control over your finances, allowing you to satisfy your debts and rebuild your credit simultaneously.

How is a Chapter 13 Bankruptcy Different from a Chapter 7 Bankruptcy?

There are many key differences between these two types of bankruptcies.

  • There is generally no income cap to file for a Chapter 13 bankruptcy.
  • Your assets do not have to be liquidated to satisfy all or a portion of your debts. You do not have to list certain assets as “exempt” with a Chapter 13 bankruptcy, since all your assets will remain under your ownership.
  • Your will still owe all of your debt. Under a Chapter 13 bankruptcy, no debt is erased. The court will impose a 3-5 year repayment plan that enables you to make affordable payments for the specified period of time, until your debts are satisfied.
  • A Chapter 13 bankruptcy may be discharged from your credit report after 7 years. A Chapter 7 bankruptcy will remain on your credit report up to 10 years.
Benefits of a Chapter 13 Bankruptcy

Although it may be frustrating to consider that you will have to repay all of your debts through a Chapter 13 bankruptcy, as opposed to having them wiped clean in a Chapter 7 bankruptcy, there are many benefits to filing for a Chapter 13, including:

  • If you incur new debt during the repayment process, you can be released from your obligations under Chapter 13 and refile to include your additional debt
  • You can file bankruptcy again much sooner after filing for a Chapter 13 bankruptcy than you can after filing for a Chapter 7 bankruptcy
  • You can use a Chapter 13 bankruptcy to help you catch up on payments, like your auto or home loan payments
  • A Chapter 13 bankruptcy allows you to repay tax debts without additional interest, which can save you hundreds or even thousands of dollars over time
  • A Chapter 13 bankruptcy allows you to pay your legal fees over time with the rest of your debt, whereas you must pay all legal fees up front before filing for a Chapter 7 bankruptcy
Contact the IM Law Group Today

If you are struggling to pay back your debts, don’t wait to get legal help. Your credit score and financial future depends on your quick action.

At the IM Law Group, we understand the inherent benefits that filing for a Chapter 13 bankruptcy has, and we can evaluate your case thoroughly to determine whether this type of bankruptcy is right for you and your family.

Call today for a consultation to discuss your unique financial needs with our experienced New York bankruptcy lawyers at (516) 344-8010. We are available now to assist you with your bankruptcy questions.