What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a consolidation and debt repayment plan that is most appropriate for individuals with regular income who are currently unable to pay their debts, but wish to do so. Under Chapter 13, consumers propose and carry out a repayment plan whereby creditors are paid over an extended period of time, typically three to five years.

The Chapter 13 process usually allows individuals to remain in their home and hold on to other assets such as a car or boat. Most debtors end up paying less than the full amount of the unsecured debt.

Chapter 13 payment plans can be restructured if your income or expenses change enough to prevent you from handling the original payments. The modified plan must be approved by the Chapter 13 bankruptcy trustee.

At the law office of Goldsmith & Guymon, P.C., in Las Vegas, Nevada, our attorneys help individuals determine whether Chapter 13 bankruptcy is the best solution for them. If so, we assess the amount of debt you face and how much disposable income you have each month in order to establish a realistic repayment plan. Your payments will be made to a Chapter 13 trustee, who distributes the money to your unsecured debtors.

The Benefits Of Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy provides individuals with important advantages, including:

  • Preventing mortgage default and stopping foreclosure by allowing you to pay any mortgage arrearages through the Chapter 13 plan
  • Stopping harassing creditor phone calls, letters and emails through an automatic stay that prevents most creditors from hassling you during your case
  • Reducing the amount of a vehicle loan to the actual value of the vehicle through a "cram-down"
  • No interest accrues on credit card and finance company debt after the filing
  • No interest or penalties accrue on tax debt after the filing
  • You may be able to eliminate a second mortgage

Chapter 13 bankruptcy is a viable solution for many of those facing seemingly unmanageable debt. However, it is a complex process that is best handled by an experienced Las Vegas Chapter 13 bankruptcy lawyer.

Questions? Please Contact Us.

Call 702-475-9463 or use our contact form to schedule a consultation. We will review the unique aspects of your situation and provide a straightforward assessment, as well as a recommendation for the best steps to take.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.