Answering Common Questions Regarding Chapter 13 Bankruptcy

At the Long Island bankruptcy law firm of Macco & Stern, we get many questions each day about Chapter 13 bankruptcy. Most people want to know more about the process and what it means for their financial future.

We hear many of the same questions time and time again, so our lawyers prepared some basic answers to these questions to help you determine if Chapter 13 is right for you. This is not intended as legal advice, as your situation will need to be carefully analyzed by our attorneys to understand the best option available to you. We would be happy to help you learn more about what you can do to eliminate your debt and get a fresh start.

Is Chapter 13 an option if I owe back taxes?

Yes. You may still potentially be eligible to file for Chapter 13 if you owe back taxes. The amount of back taxes can be included in your payment plan, allowing you to effectively manage this debt over time and have more control over your finances. This can prevent you from having to sell off or lose assets in order to pay this debt.

What happens if I am behind on my mortgage and file for Chapter 13?

Chapter 13 allows you to pay back your debts over a three to five year period, which depends upon your specific situation. In other words, if you have past due mortgage payments, and it is worth staying in your home, Chapter 13 can allow you time to pay these debts back over that three to five year period.

Now, this of course is going to depend upon many different factors, and we need to look at what is happening to you in order to determine if keeping your home is the right option. It may also be possible to modify your mortgage to obtain more favorable terms, or take other action in order to protect what is most important to you.

Since Chapter 13 means I have a payment plan, is this really doing anything to help me?

Yes, even if it does not seem like it at first glance. Most clients going through Chapter 13 have assets that they want to keep, and do not want to lose them due to financial problems. What Chapter 13 does is that it potentially allows you to keep those assets, and pay off your creditors over time, with a monthly payment plan.

The amount of these payments may not be the complete amount that you owe for certain debts, which again, depends upon the debt and your specific circumstances. But there are many advantages to filing for Chapter 13 bankruptcy, and we would be happy to explain them to you if we feel that Chapter 13 might be right for you.

Have Additional Questions About Chapter 13?

We invite you to contact our experienced lawyers by calling 631-549-7900 or by sending us an email to arrange your free consultation. We have helped thousands of people in Nassau County and Suffolk County file for bankruptcy and regain control over their finances.

We are a debt relief agency. We help people obtain relief under the Bankruptcy Code.