When you are considering filing for bankruptcy in New York, you usually need to decide what kind of bankruptcy will be best for your situation. At Macco and Stern, LLP, we know it is important for you to understand the fine details about Chapter 13 bankruptcy so you can make an informed decision.
There are many benefits to filing for Chapter 13. The United States Courts says that this kind of bankruptcy allows you to repay your debt over a period of time. You typically still need to pay your mortgage. However, your creditors generally cannot contact you to collect money. Additionally, your secured debts can usually be rescheduled so you can repay them while your bankruptcy is in place. Sometimes this may result in lower payments each month so your payments are more manageable.
Sometimes you may be able to use a Chapter 13 to keep your home. Foreclosure proceedings typically end when your bankruptcy petition begins. Additionally, your wages generally cannot be garnished. As with other types of bankruptcy, you usually need to be transparent about your finances. You typically need to provide information about your property and sources of income, as well as your expenses and the amount you owe to each creditor.
You may worry that you will not be able to keep your assets if you file for Chapter 13. However, one of the advantages of Chapter 13 is that you can sometimes keep your assets while paying off your debt. Additionally, Chapter 13 may sometimes be beneficial if you need to pay back taxes. This is because your payments plan can include these back taxes. More information about this subject is available on our webpage.