Chapter 13 Bankruptcy
Rappaport Osborne & Rappaport has extensive experience in representing individuals who wish to file Chapter 13 bankruptcies. Jordan Rappaport has handled a wide variety of Chapter cases ranging from simple and straight forward to incredibly complex. Jordan prides himself on being able to craft creative resolutions that help his clients gain the most benefit.
Generally, Chapter 13 is preferred by debtors who have a valuable asset, such as a home, that is not completely covered by exemptions and that they wish to keep. This is possible because under Chapter 13 a debtor proposes a plan to repay creditors over a three to five year period during which the debtor can make up overdue payments on any assets and pay into the plan the equivalent value of any assets not covered by exemptions.
Since the debtors plan will require regular monthly or biweekly payments, Chapter 13 is usually only appropriate for an individual debtor who has a regular source of income. Chapter 13 is very different from chapter 7, since the Chapter 13 debtor usually remains in possession of the property of the estate and makes payments to creditors, through the trustee, based on the debtor’s anticipated income over the life of the plan. Unlike Chapter 7, the debtor does not receive an immediate discharge of debts.
The debtor must complete the payments required under the plan before the discharge is received. The debtor is protected from lawsuits, garnishments, and other creditor action while the plan is in effect. The discharge is also considerably broader (i.e., more debts are eliminated) under Chapter 13 than the discharge under Chapter 7 A Chapter 13 can potentially accomplish the following:
- Vehicle re-valuation (reduce the amount owed on a vehicle owned more than 910 days)
- Remove 2nd Mortgages or Home Equity Lines of Credit (HELOC) from your home
- Allow you to keep valuable assets through the length of the case
- Allow you to pay taxes over 60 months
- Stop a foreclosure and allow repayment over 60 months