Chapter 13 Bankruptcy

Unlike in Chapter 7 bankruptcy, where the goal is to quickly discharge your debts and liquidate nonexempt assets for the benefit of your creditors, a Chapter 13 bankruptcy is designed to help you rehabilitate and restructure your debts. The purpose of a Chapter 13 bankruptcy is to provide you with an organized repayment of your debts, which is performed according to your Chapter 13 plan. Kapnek Law Firm will craft a Chapter 13 plan customized to the particulars of your individual situation. And, once you have completed your Chapter 13 plan, which usually lasts between 3 and 5 years, you receive a discharge of your debts, which bars your creditors from collecting on those debts, thereby giving you permanent relief and facilitating a financial fresh start.

Curing Defaults

If you have fallen behind on monthly payments to a creditor (for example, on your home mortgage or car payments), a Chapter 13 case can help you get back on your feet so you can keep your property. In some circumstances you can cure an arrearage through your Chapter 13 plan while maintaining your ongoing payments directly to the creditor and in other circumstances the entire debt will be paid as a part of your Chapter 13 plan. In some cases, we can even help you reduce the interest on your loans and, sometimes, reduce the amount owed on the loan itself. Chapter 13 bankruptcy can be a powerful tool to help you reorganize your financial life and help you get a fresh start, but it can also be very complicated, which is why it is imperative that you have an attorney with expertise to assist you.

Preventing Liquidation

When filing Chapter 7 bankruptcy would result in a liquidation of your assets, it may make sense to file a Chapter 13 bankruptcy instead. Since Chapter 13 affords you the opportunity to repay certain debts, you can structure your Chapter 13 plan to pay your creditors what they would otherwise receive in a hypothetical liquidation under Chapter 7. In Chapter 13, there is no liquidation, and you simply make monthly payments according to your Chapter 13 plan, and, upon completion, you will receive discharge of your debts.

Get Legal Advice Now

Come meet with us at Kapnek Law Firm. We can work with you to give you an estimate of your monthly payments, and many cases can be filed the very same day.

Call 404-474-3445 or contact us today to find out whether bankruptcy is right for you.