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Chapter 13 Bankruptcy

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Chapter 13 Bankruptcy

The Law Offices of Nella B. Mariani, P.C. offers a wide range of bankruptcy and debt relief services to help people who are overwhelmed with debt or facing foreclosure and/or repossession. In addition to Chapter 7 bankruptcy, Chapter 13 May Allow You To:

  • Stop home foreclosure or Sheriff’s sale

  • Stop repossession or recover a vehicle that has been repossessed

  • Lower monthly payments

  • Gain additional time to repay debts gradually

  • Stop garnishment or judgment

  • Eliminates a portion of your debt

  • Lower or eliminate high interest rates

  • Eliminate or “strip” a second mortgage

What is Chapter 13 Bankruptcy?

Chapter 13 is a form of debt consolidation. A Chapter 13 is typically the bankruptcy of choice for people who are behind in their mortgage or car payments, or have non-exempt assets they wish to keep.

In a Chapter 13, a plan is filed with the court in which you promise to pay all or part of your debt within a 3-5 year period. The plan requires you to make monthly payments to your appointed Chapter 13 trustee, who uses your payments to pay your creditors. In addition to gaining more time to pay debts, a portion of your debts may be discharged as well. You will receive your bankruptcy discharge after completion of your plan.

Stop Home Foreclosure

I If you are in financial distress or about to lose your home, Chapter 13 bankruptcy should be a consideration. Chapter 13 can stop the foreclosure process. The “automatic stay” is the primary reason Chapter 13 bankruptcy is such of powerful method of dealing with foreclosure. The filing of your bankruptcy petition automatically stops most creditor actions against you and your property. It allows you time to repay your creditors over a 3-5 year period. In fact, in a Chapter 13 bankruptcy, you can cure a mortgage default in installment payments over time rather than having to come up with a lump sum.


Stop Repossession

Chapter 13 bankruptcy stops repossession of your vehicle and may lower your monthly payment, reduce the amount owed, lower your interest rate, or extend the time to pay your debt. You may also recover a repossessed vehicle that has not yet been sold by your lender.

Chapter 13 Eligibility

Chapter 13 bankruptcy is available for individuals who have a steady income and are able to pay their current monthly expenses. Chapter 13 requires you to make a monthly payment to your appointed Chapter 13 trustee. The monthly payment amount varies with each case and is generally based on your disposable income. To determine if you qualify for Chapter 13 bankruptcy, contact the Law Offices of Nella E. Mariani, P.C. and speak to an experienced Illinois bankruptcy attorney.


Advantages of Chapter 13

  • Bankruptcy of choice if you are behind in mortgage or car payments

  • Stops foreclosure and Sheriff’s Sale of home and allows you to pay creditors over 3-5 year period

  • Stops repossession, and in most cases, you can recover a repossessed vehicle that has not been sold

  • You may keep all of your property including all “non-exempt” property

  • Some debts that are not dischargeable in a Chapter 7, such as parking tickets, may be discharged in Chapter 13

  • You may pay federal taxes over a period of time without accruing interest and penalties

  • Unsecured debt such as credit cards, medical bills, judgments, utility bills, payday loans, and deficiency balances may be reduced, or in some cases, eliminated.

Bankruptcy Experience That Works for YOU

Attorney Nella E. Mariani has more than a decade of experience in bankruptcy, debt relief, and bankruptcy litigation. Her practice focuses exclusively in bankruptcy and debt relief matters. She works closely with each client and provides them with a high degree of knowledge, professionalism, and sensitivity.

If you need to speak to speak to an experienced Illinois bankruptcy attorney, contact the Law Offices of Nella E. Mariani, P.C. to schedule your FREE CONSULTATION.

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