Schiller Park bankruptcy attorney claims that Chapter 13 is the best Chapter you can file if you are trying to save a home that is in foreclosure. Chapter 13 will allow you to repay your mortgage arrearages over a 3 to 5 year period while being able to make your monthly mortgage payment on time once again. Chapter 13 can also effectively lower the amount that you pay for your automobile. If your automobile was purchased more than two and half years ago, you have the ability to pay back the fair market value of that vehicle at 100% on the dollar, and pay the unsecured portion at less than 100% on the dollar.
Another great advantage of Chapter 13 is that you are able to pay unsecured creditors last then the full amount owed in your case. Another added benefit that most people don’t even realize in Chapter 13 is that if unsecured creditors don’t file proofs of claim and you complete your bankruptcy case, then those debts are eliminated 100%. So when someone talks about paying back 10% or paying back 50%, they might not even be factoring in the fact that some creditors will not file proofs of claim and those creditors will not be part of your repayment plan.
Chapter 13 is also a great idea for someone who has non-dischargeable debts such as student loans, recent taxes, parking tickets, child support or alimony and wants to reorganize those debts and pay them back over time. Non-dischargeable debt is not going to be paid back less than 100%; however you do have the 3 to 5 year grace period to repay those non-dischargeable debts. While you are repaying those debts, you can keep your license from being suspended. You can keep yourself from being held in contempt of court for failure to pay child support arrearages and you can otherwise take advantage of the lower interest rate that the consolidation might provide for you. The Chapter 13 trustee is going to make sure that you are paying all that you need to pay based on your income, your expenses and your total debt.
Chapter 13 must pay back at least what the creditors would get in a Chapter 7 liquidation analysis case. Thus, the court and the trustee and the creditors have an interest in making sure that you as a Chapter 13 debtor are putting all of your disposable income towards the repayment of your debt. Provided you as a debtor can stay employed or can otherwise make your trustee payment on time over the next 3 to 5 years, you are going to be able to hold off those creditors from high interest, collection efforts, and harassment. Chapter 13 is most common to save a home but it can be used to reorganize any other type of consumer debt.