What Is Chapter 13 Bankruptcy, And How Do I File?
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is often called reorganization bankruptcy. It allows you to reorganize your debts in a way that you can keep your assets and pay your creditors with a manageable monthly payment. You will create a plan with your creditors to get the terms of your debts adjusted so you can afford to pay them off. In many cases, you may be paying less than you would in a chapter 7 filing.
Unique Benefits of a Chapter 13 Bankruptcy
There are some unique benefits you get from a Chapter 13 bankruptcy filing that you do not get from other forms of bankruptcy. These are:
- Stop Foreclosure: A Chapter 13 will stop a foreclosure at any point before the trustee’s sale. This means you can stay in your home, pay your monthly mortgage payment according to your plan, then the bankruptcy trustee makes payments to your mortgage company until you are current on your house payments.
- Pay Back Taxes: If you owe past income taxes these can be included in your repayment plan. You can protect yourself and your property.
- Reduce Car Or Furniture Loans: In some cases if you have a car loan that is older than 30months or a furniture purchase that is more than 1 year old, you can have the loan reduced as part of your repayment plan. If your loans are newer than that we may still be able to help. Call to get more details.
- Keep Your Assets: In Chapter 7 bankruptcy the trustee is in charge of collecting money from you to pay your creditors. In this case, much of that money can come from selling your property and using the money earned to pay your creditors. In a Chapter 13, you keep your property, including tax refunds.
Trust Rulon T Burton & Associates With Your Bankruptcy
We, at Rulon T Burton & Assoc. have over 25 years of Utah Bankruptcy experience. Get financial relief and start enjoying the benefits of a chapter 13 bankruptcy without the hassle and frustrations. Call us or fill out the contact form and we will get started today!