A Bankruptcy attorney will offer advice, but in general, Chapter 13 bankruptcy may work better than Chapter 7 if…
You are behind with your car loan payment and don’t want to have the auto repossessed or you are past due on your mortgage payment and want to save your property from foreclosure. In either of those cases, Chapter 13 may be a good option for you. Just remember that the repayment plan should show you are in a position to maintain current monthly repayments and pay outstanding amounts.
You are aiming to strip off an unsecured second mortgage on your property. If the property has not been used to secure the debt, a Chapter 13 repayment plan could wipe out the second mortgage. For instance, your Gwinnett County home is currently valued at $250,000. Your first mortgage is worth $300,000 and the HELOC (Home Equity Line of Credit) stands at $50,000. Under Chapter 13 the $50,000 debt could be stripped off.
You are endeavoring to cram down secured debt that outweighs the property value. Consult a Duluth Gwinnett County Bankruptcy Lawyer and he may be able to hatch a repayment plan that eliminates the crammed down debt via monthly payments. For example, your car loan stands at $9,000; but the auto is worth just $6,000. In this case, you should propose to pay the creditor the amount outstanding in sixty monthly payments, plus interest.
You own numerous non-exempt assets that you would be unable to keep under the Chapter 7 laws. Your future income will fund the proposed repayment plan, so under Chapter 13 you will not have to relinquish ownership of a property.
You are unable to negotiate a payment plan with the IRS to repay a significant amount of back tax.
A court-supervised plan to settle the debt would be beneficial
It is important to note that a car loan on a new or used auto cannot be crammed down if the vehicle was bought thirty months before filing for bankruptcy. Personal property is also subject to other cram down restrictions.
An experienced Duluth Bankruptcy Lawyer will be able to support your cause. The Chapter 13 bankruptcy laws are complex, but the Cornwell Law Firm will analyze your situation and create a manageable Chapter 13 repayment schedule.