Chapter 13 Bankruptcy Lawyers – Astoria, Brooklyn & Manhattan, NY
When an individual finds their finances spiraling, they might feel as though there is little help to be had. Chapter 13 bankruptcy offers the unique choice to reorganize your finances when things get overbearing. The team of professionals at Ortiz & Ortiz, LLP, want to ensure that clients understand how Chapter 13 can help them manage outstanding debt and where its benefits can take them in the long run.
What is Chapter 13 Bankruptcy?
In the state of New York, Chapter 13 bankruptcy is a proposal to creditors of a 3-5-year repayment plan from the debtor and their future earnings. Chapter 13 requires that you have a stable income at the time of filing even if it is well below the New York median. Chapter 13 bankruptcy procures many benefits for the debtor such as stopping interest from accruing on tax debt, preventing the foreclosure of a home while allowing them to catch up on missed payments, keeping estimable property and, of course, ultimately discharging their debt after the repayment period so long as they stick to the terms.
When Should I File for Chapter 13 and Why?
There are various reasons why an individual would be best advised to file for Chapter 13 in New York. While the final decision of when to do so is entirely up to the person filing, it is something to consider if:
- You want to yield an investment property that has hit rock bottom back to the lender.
- You want to prevent the foreclosure of your home and set up a five-year repayment plan.
- You earn too much income to qualify for Chapter 7 bankruptcy.
- You filed for Chapter 7 bankruptcy before and were awarded a discharge less than eight years prior.
- You want to protect your assets and property from liquidation.
For all these reasons and more you could find Chapter 13 bankruptcy beneficial to your particular situation. The attorneys at Ortiz & Ortiz, LLP, can advise you during this period of reorganization and will ensure that your most valuable assets are protected and that the repayment plan awarded suits your future endeavors.
Paying It Back
One of the significant advantages of Chapter 13 bankruptcy is that it allows the opportunity to make up long overdue payments over time while reinstating the original agreement with the creditors. A new repayment plan that is better suited for your current financial situation can make a world of difference. The opportunity is there for you to regain control and ease the pressure while reorganizing your most essential assets. Remember that after no more than five years all outstanding debts can be discharged completely.
Secured and Unsecured Debt
Debt can be either secured, which means that there is a specific material possession tied to the debt such a vehicle or a home, or unsecured, such as credit card debt which does not have any particular object attached to it. Unsecured debts have the possibility of being reduced by the court upon presentation of the repayment plan; this is the aim of an attorney on behalf of their client and signals a favorable result. Secured debts can be reworked and paid back as stated above. It is crucial that all obligations are laid out and examined to produce a sound repayment plan.
Bankruptcy Chapters – Chapter 13 becomes an option for many individuals who do not qualify for Chapter 7 or Chapter 11 bankruptcy either via the Means Test or because they previously filed for it and were awarded relief less than eight years ago. The New York Means Test applies to residents of the state who meet or exceed the median income for their household size and determines whether some part of their unsecured debts can be paid back via Chapter 13 bankruptcy.
Ultimately there are some significant differences between the three Chapters: Chapter 11 is typically reserved for businesses that wish to retain their assets while they repay debtors over time. Chapter 7, the most lucrative option, provides a “fresh start” for the debtor by liquidating all non-exempt assets and utilizing the funds to pay off creditors. All options provide relief, but it is vital that you know which is best suited for your case. An experienced attorney can help.
Do I need an attorney?
One of the great advantages of hiring an attorney to help file a Chapter 13 bankruptcy in the state of New York is that debtors will be ordered, by law, to stop any collections effort on their part right away. Once collection payments have been halted, you are given a reasonable time by the court to present your repayment plan to them and your creditors. At Ortiz & Ortiz, LLP we will help you prepare a plan that suits you and places you in an advantageous position for the future by:
- Helping you understand which debts have the potential for significant reductions in total repayment
- Outlining exempt and non-exempt assets of yours that will be examined by the court and your creditors
- Presenting a convincing argument that yields a beneficial outcome for you
- Counseling you each step of the way toward a satisfying and concrete finish and much more
Only a court of law can compel creditors to take a reduction in total payments, and that is why it is crucial that debtors are well represented. You might not be legally required to hire an attorney, in other words, but investing in professional help today could have long-lasting consequences upon your life and financial stability.
About Ortiz & Ortiz
For over fifty years the team at Ortiz & Ortiz have helped the people of New York solve their legal issues. They have the experience and knowledge necessary to help secure a positive outcome in your case. Contact our firm today to schedule a consultation.