FAQ - Chapter 13
Answers to common Chapter 13 bankruptcy questions.
A: Chapter 13 is a debt repayment plan, unlike Chapter 7 where you wipe out your debts completely.
A: Filing for Chapter 13 will stop a foreclosure any time prior to a Sheriff's foreclosure sale, and will allow you to repay your mortgage arrears. You will still be obligated to make all future payments directly to the Mortgage Company, but they may not proceed with the foreclosure.
A: In Chapter 13 you can consolidate your student loans with your other bills, and stop any collection activity against you. You may not eliminate student loans in a Chapter 7.
A: It depends upon the kind of tax debt. This is why a consultation is very important. Please contact our office to schedule a free consultation.
A: That depends. Often candidates for bankruptcy already have a low credit score. In many cases, a bankruptcy can actually improve your credit score.
We can pull a credit report for our clients which can project a credit score after a completion of a bankruptcy case.
Q: Will I lose my car if I file Chapter 13?
A: Chapter 13 is a reorganization plan in which the debtor is allowed to keep their important assets such as cars and their home. Many times clients can even keep their vehicles with improved interest rates and payback terms.