Are you behind on your mortgage payments and your property is in foreclosure? Do you earn regular income? Maybe money can’t buy happiness, but it can certainly cause negative emotions when you struggling financially. Fear, sadness, shame. These are just a few feelings you may experience when you’re considering bankruptcy. But you have options—and a Chapter 13 bankruptcy just may be your solution.
A Chapter 13 bankruptcy is primarily designed to help individuals or couples who don’t qualify to file Chapter 7. A New Jersey bankruptcy attorney at Garces, Grabler, LeBrocq can help you determine which type of bankruptcy to file based on how much disposable income you have after all expenses are calculated, and how much equity remains in your home.
Chapter 13 Bankruptcy: A Preventative Solution
A Chapter 13 petition is filed to prevent or delay a sheriff sale. It works almost the same way if you’re financing a car, and are behind on your car payments but wish to retain the car. A Chapter 13 reorganization plan would be eventually set up for a period of five years to allow a debtor time to catch up with the mortgage payments, refinance, sell, and/or pay other debts. If you have credit card debt, these debts could also be listed on the bankruptcy petition.
Chapter 13 bankruptcy allows you to:
- Reorganize and consolidate your debts and repay them interest free over a 36-month or 60-month period
- Stop foreclosure on your home if filed prior to sheriff sale
- Stop creditors from collecting any money from you
How to Qualify for a Chapter 13 Bankruptcy NJ
In order to qualify for a Chapter 13 bankruptcy NJ, your repayment plan must be approved by the court. And in order to get approved, you must be gainfully employed or have some other verifiable source of consistent income. In essence, you have to be able to demonstrate not only that you have the financial ability to pay the regular mortgage payment and your other living expenses, but also the economic ability to make an additional payment to the trustee to consolidate your outstanding debt. Sound like you? If so, Garces, Grabler, LeBrocq, New Jersey bankruptcy attorney, can help you take the first steps.
Under Chapter 13, you’re still obligated to make all future mortgage payments to the bank or mortgage company as before, plus an additional payment to the trustee to cover the outstanding consolidated debt amount.
If you’re considering a Chapter 13 bankruptcy NJ Garces, Grabler, & LeBrocq are available for a free consultation. To speak with a bankruptcy lawyer immediately, call 800.923.3456 or contact us online to discuss your legal matter today.