Chapter 13 stops mortgage foreclosures, sheriff sales and the tax man. Chapter 13 filing is the ideal form of bankruptcy to file for individuals who have the ability to pay off their debt over time at a reduced rate. Although originally designed to help individuals, chapter 13 can also help self-employed, small businesses through difficult financial times. Chapter 13 is an alternative option for individuals whose income is too high for them to qualify for chapter 7 bankruptcy filing.
Chapter 13 Bankruptcy Filing vs. Chapter 7 Bankruptcy Filing
Although the initial filing is similar to that of chapter 7 bankruptcy filing, chapter 13 filings allow clients to pay their debts over time if they are behind on payments. As with chapter 7, chapter 13 requires the filing of petitions, schedules, and other documents that outline a client’s financial situation. However, chapter 13 also requires the submission of a plan that demonstrates how debt and bills will be paid off in the future.
The Benefits of Chapter 13 Bankruptcy Filing vs. Chapter 7 Bankruptcy Filing
One of the greatest advantages of chapter 13 bankruptcy filings is that it allows individuals to pay back only a small portion of their unsecured debt. In addition, even though clients still pay back their creditors with chapter 13, they no longer must deal with creditors as payments are made directly to a bankruptcy trustee. Moreover, unlike with chapter 7, chapter 13 may be able to ensure that creditors do not go after co-signers of an individual’s debt.
Chapter 13 bankruptcy filings can be a difficult procedure without the proper help. That is why William D. Schroeder Jr. recommends using the services of a bankruptcy attorney in Philadelphia. William D. Schroeder Jr. has 30 years experience in helping clients with chapter 7, chapter 11, and chapter 13 bankruptcy filings. He offers flexible payment options available for individuals that may not be able to afford legal services in their current situation.
To learn more about the full legal services offered at William D. Schroeder, Jr. Attorney at Law, explore the website at https://www.jrlaw.org/ or contact:
William D. Schroeder, Jr. Attorney at Law
262A Bethlehem Pike, Suite 102
Colmar, PA, 18914
Phone: 215 822 2728