Chapter 13 Bankruptcy

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The Reorganization Bankruptcy

The Chapter 13 bankruptcy is known as the reorganization bankruptcy. It gives you an opportunity to restructure your finances and pay off a portion of your debt over time. During the repayment period, creditors are prohibited from collection activities.

The debt repayment plan lasts for a period between three and five years. Most debts incur zero interest during this period and once you have completed your payment plan the remaining portion of your debt is wiped out or discharged. A Chapter 13 Bankruptcy will stop foreclosures and repossessions.

When to Choose Chapter 13 Bankruptcy

  • If you have income to make a mortgage payment, but have fallen behind due to unforeseen circumstances. The Chapter 13 payment plan can wrap in your mortgage arrears so that you become current on your mortgage and avoid foreclosure.
  • If you have a vehicle that is worth less than the amount owed on it or payments are in arrears. In certain circumstances, these loans can be lowered to the market value of the vehicle and spread out over the three to five year repayment period. This can significantly lower your monthly vehicle payment.

Find Financial Relief

The Bellah Perez bankruptcy attorneys are committed to helping individuals and families regain control over their finances. We work closely with our clients through the Bankruptcy process to find the best solution whether it is Chapter 7 Bankruptcy, Chapter 13 Bankruptcy or debt negotiation.

Set up a consultation with one of our experienced attorneys today.
Contact Bellah Perez, PLLC at 602-252-9937.