Chapter 13 Bankruptcy Attorney Helping Individuals and Families in Rochester

Many people who are earning regular income sometimes find themselves over-extended and unable to keep up with their monthly bills. In many cases, individuals and families in this situation are unable to qualify for Chapter 7 bankruptcy. In other instances, a person may be hesitant to file for Chapter 7 bankruptcy because of the fact that they may have to part with important assets. Fortunately for debtors, Chapter 13 bankruptcy can often help people who earn regular paychecks keep their assets while paying down their debt.

Chapter 13 Allows For the Reorganization Of Debts

Chapter 13 is a type of bankruptcy that allows debtors who are having difficulty making their payments to enter into a court-approved payment plan. Under this plan, a debtor proposes payment plan under which they make installment payments to creditors over a period of three to five years.  As long as payments are made on time, a debtor’s assets are protected from creditors.

One of the main advantages of Chapter 13 bankruptcy is that it can allow homeowners to save their homes from foreclosure. When a person files for Chapter 13, any foreclosure proceeding that has started against them is stopped and cannot proceed during the period of the repayment plan. In addition, Chapter 13 may also be able to reduce payments on other types of secured debts. Under a Chapter 13 plan, debtors make payments directly to a bankruptcy trustee and do not have contact with their creditors.

Filing for Chapter 13 bankruptcy can help stop the following types of collection activity:

• Foreclosures;
• Repossessions;
• Levies on bank accounts;
• Lawsuits;
• Collection calls and letters; and
• Garnishments.

How Can an Attorney Help?

People who are considering bankruptcy are generally experiencing financial trouble. For this reason, they may be tempted to forgo the costs associated with retaining an attorney and filing for bankruptcy themselves. While this may initially seem prudent, it is often not. In fact, the federal government itself recommends that people file for bankruptcy with the assistance of an experienced attorney. There are many ways that an attorney can help you, including:

• Collecting and organizing the required documentation;
• Ensuring compliance with filing requirements;
• Completing required forms;
• Representing you at the meeting of creditors; and
• Establishing your proposed repayment plan.