Considering Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Is Adaptable

In simple terms, chapter 13 bankruptcy is a reorganization plan where the debtor makes payments into a plan for 3 to 5 years. One of the most appealing components of chapter 13 is having a “plan” that allows you to modify the rights of certain creditors and is why chapter 13 bankruptcy is adaptable. As a bankruptcy attorney, I think this is an awesome, powerful tool for debtors! Let me tell you more.

Within the entire bankruptcy code, Chapter 13 is the best at dealing with secured creditors and working to the debtor’s benefit. There are many instances in which you can change the terms of your contract. As a debtor who has filed chapter 13 bankruptcy, you have the option to change your “plan” and benefit in the following ways:

  • Lowering the amount you have to pay a creditor on an asset. 

This is usually a car. One of the greatest things McCune Legal can do for a chapter 13 debtor is to put the car into the plan and only pay the value of the car and NOT what the debtor owes. 

  • Lowering the interest rate
  • Pay a creditor over a longer period of time
  • Cure mortgage arrears
  • Save your house from foreclosure!
  • Entirely wipe out a lien 
  • Strip off a second mortgage
  • Surrender of the collateral 

A lot can happen in the course of 3 to 5 years, so it is common for adjustments such as these to take place after the plan is confirmed, but before the plan is completed. Things change. Life happens. And while there are limitations, many times your chapter 13 bankruptcy case can change as well to provide you with the best benefits possible. 

McCune Legal has the experienced team you want on your side to help navigate your bankruptcy journey — ensuring it’s as smooth and stress-free as possible! Give us a call today.