Free Initial Consultations Available : 800-822-1066

chapter 13 Archives

Using Chapter 13 to protect the family home

A family in Carbon County may have several reasons to consider filing a Chapter 13 bankruptcy in the event they fall on financial hard times. As this blog has mentioned previously, a Chapter 13 bankruptcy is a bit different than the more common Chapter 7 in that it requires a debtor to get the court's approval of a repayment plan. After following through on the repayment plan, a family will be discharged from any outstanding debt.

Seek manageable debt relief with Chapter 13 bankruptcy

One of the overwhelming fears that Pennsylvania debtors carry with them about bankruptcy is the concern that they will have nothing left when the process is over. Despite the debts, individuals may worry about losing the rooves that are over their heads or the cars that they drive to their jobs. While Chapter 7 bankruptcy does involve the selling off of property in order to pay creditors, Chapter 13 bankruptcy offers a different type of solution to burdensome debts.

How are my monthly payments calculated in a Chapter 13 plan?

Chapter 13 bankruptcy is also known as a wage earner's plan, or debtor's court. This is because its purpose is to allow debtors to consolidate creditor payments over a three to five-year period. Those payments can include amounts on which a debtor has fallen behind, such as a home mortgage or car note, while allowing them to retain the collateral and catch up. Payment amounts are based on the debtor's current income.

How many times and how often can I file Chapter 13 bankruptcy?

In short, the answer to this question is that a person may file bankruptcy as many times as they wish throughout their lifetime. The only stipulation to this statement would be that any bankruptcy filing will depend on eligibility for filing under a given chapter. For example, under the United States Bankruptcy Code, an individual is ineligible to file under Chapter 13 if they have unsecured debt that exceeds a total of $394,725 or secured debt that exceeds a total of $1,184,200. In these cases, a party would need to file under a different Chapter.

Using Chapter 13 to avoid foreclosure

Lehighton residents who are struggling to pay their bills can feel overwhelmed and frustrated. Just when you think you're doing OK, another bill arrives and you're behind again. Or an unexpected expense pops up, like medical bills or a car needs to be fixed. Regardless of how a person got to this situation, when a house is at risk of foreclosure, Chapter 13 bankruptcy protection may be able to help.

How does a Chapter 13 bankruptcy work?

The main purpose of a Chapter 13 bankruptcy is to consolidate debt and stop foreclosure or repossession. Even though a Chapter 13 plan extends payments over a longer period of time, a creditor cannot legally pursue collections on any account that is included in an active bankruptcy. These plans are intended to include past due payment amounts along with ongoing payments, thereby allowing a debtor additional time to bring an account back to current status.

Lehighton Office

Rapa Law Office, P.C.
141 South 1st Street
Lehighton, PA 18235

Lehighton Law Office Map

Allentown Office

Rapa Law Office, P.C.
609 Hamilton Street, 1st Floor
Allentown, PA 18101

Allentown Law Office Map

Contact Numbers

Phone: 610-377-7730
Toll Free: 800-822-1066
Fax: 610-377-7731
Toll Free: 866-740-6117

Review Us