It’s very common for people to have money problems. You might be surprised to hear that thousands of people file for bankruptcy each year. A couple of the most common forms of bankruptcy are Chapter 7 and Chapter 13.
Many people choose Chapter 7 when they’re open to liquidation, but you might be interested in Chapter 13 bankruptcy for these reasons:
1) Filing for Chapter 13 can help you to stop foreclosure proceedings and save your home. Yep, that’s true even if you’re not current with mortgage payments.
2) You can pay back your outstanding debts over an extended period (usually between three and five years). Once the payment plan is concluded, the debt you owe to your creditors will be discharged.
3) You will only be required to pay back certain debts. These include income taxes and mortgage arrears. However, credit cards, medical bills, and other debts might be wiped out.
4) Mortgage lien stripping may allow you to “strip off” a second or third mortgage or “cram down” an unreasonable car loan.
This article should not be taken as legal advice. If you’re considering bankruptcy or another legal debt relief option, you need to consult an attorney for guidance. If you’re in New Jersey and seeking legal assistance, we can help you.
Brenner Spiller & Archer is a New Jersey law firm that is dedicated to helping families find relief from the burden of debt and other financial woes. For more than 35 years, our bankruptcy lawyers have provided effective guidance on all debt relief matters to clients throughout Central and South Jersey.
