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Chapter 13 Bankruptcy
If you are considering bankruptcy, but have steady disposable income to pay a portion of your debt, or you are in foreclosure, McCormick Braun Friman, LLC can help you file a petition for protection under Chapter 13 of the U.S. Bankruptcy Code.
Chapter 13 of the U.S. Bankruptcy Code involves a repayment plan in which you pay all or part of your debts during a three- to five-year period under the supervision and protection of the United States Bankruptcy Court. Chapter 13 is designed for working people with steady incomes who want to pay their debts but are currently overwhelmed with bills, judgments, lawsuits, or other financial issues. Once the Chapter 13 case is filed, creditors cannot continue their collection efforts, and they must either accept or object what the plan proposes to pay them. Most individuals or married couples, even if self-employed, can receive Chapter 13 relief.
Upon the successful completion of a Chapter 13 repayment plan, the debtor receives an official discharge, which extinguishes all obligations to make further payment toward his or her unsecured debts, even though these creditors may not have been paid in full. In fact, many people repay their unsecured creditors no more than 10% of the total amount owed. Chapter 13 helps save the homes of thousands of Americans every year.
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