Bergen County Chapter 13 Lawyer - The Wage-Earner's Bankruptcy


Lyndhurst Attorney Can Help You Stop a Foreclosure

A Hands-on Chapter 13 Bankruptcy Lawyer, Serving Bergen, Passaic and Hudson Counties

You are not alone. Times have been hard for many people. People are worried about their financial future and are unsure of whether or not they will ever rebound.

As a law firm dedicated to bankruptcy practice, our first job is to make sure you are completely informed of the situation and its implications. Bankruptcy is a complicated area of the law. At The Law Offices of Susan S. Long, our Chapter 13 attorney will personally work with you throughout the entire process. We are always there to answer questions and provide support, whenever or wherever you need it. Contact our New Jersey bankruptcy law firm office today.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is the debt reorganization of a person's financial affairs. The goal is to create a repayment plan while also protecting the debtor from creditor harassment, the threat of foreclosure, levies, wage garnishment, and other similar collection actions. Repayment plans typically last from three to five years. Unlike debt-settlement plans, your bankruptcy repayment plan is determined by your monthly disposable income, not what your creditors want you to pay.

Chapter 13 bankruptcy is generally used by individuals who do not qualify for Chapter 7 bankruptcy debt relief and/or those who have nonexempt assets they wish to keep that would otherwise be liquidated in a Chapter 7. It can also assist a debtor who has fallen behind on secured debt payments, such as a car loan or mortgage. It allows the debtor to catch up on payments by spreading the amount overdue over 3 to 5 years or possibly modifying the terms of a loan, while still maintaining possession of the property.

Who Qualifies for Chapter 13 Debt Relief?

To take advantage of the benefits of a Chapter 13 bankruptcy, a debtor's income must exceed reasonable living expenses so that repayment to creditors is possible. This is usually determined by the bankruptcy means test and creation of a budget. In some cases, a creditor is paid in full, while in others only a small percentage of the debt may be paid. Priority debt, such as taxes, must be paid in full over the term of the repayment plan.

The debtor proposes a repayment plan to the court and once the plan is approved, the court-appointed trustee distributes the payments to the creditors. Once the repayment period ends, the debtor is discharged of any remaining debt.

Although a Chapter 13 bankruptcy requires repayment of debt as well as following the court-approved plan, it allows the debtor to stop foreclosure or repossession as well as maintaining any equity in your home or other property you wish to keep. It is crucial to understand the law governing your case in order for your Chapter 13 bankruptcy to be successful. As your bankruptcy counsel, we will assist you in making the choices most beneficial to your individual situation.

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Contact The Law Offices of Susan S. Long

Do you have questions about your bankruptcy case or are you considering bankruptcy? Call The Law Offices of Susan S. Long at 201-749-5418  or contact our Mahwah foreclosure attorney online. We offer a free, initial consultation over the phone and will schedule evening and weekend appointments.