The advantage to a Chapter 13 bankruptcy is that you can keep the property that you may have otherwise lost in a Chapter 7. You may be able to avoid or delay foreclosure. You may be able to eliminate a second mortgage lien on a primary residence or reduce the loan balance and interest rate on a car.
WHAT HAPPENS AFTER FILING FOR CHAPTER 13 BANKRUPTCY?
In a Chapter 13 Bankruptcy, you are required to repay your creditors over a three-to-five-year period. Priority debts, such as child support and alimony, as well as regular payments on secured debts must usually be paid in full. Your disposable income will then be subtracted to make payments on your unsecured debt to the extent that you are able to do so. A Chapter 13 repayment plan can be modified on the basis of hardship. Chapter 13 Bankruptcy can also be converted to a Chapter 7 Bankruptcy in some cases. Remaining unsecured debt will be eliminated after the payment plan is completed as long as you have completed payments for child support and/or alimony obligations and as long as you have completed a budget counseling course with an approved agency.
The lawyers at the Law Office of Diane K. Bross are ready to assist you through every step of the process when filing for Chapter 13 bankruptcy. For more information about filing for Chapter 7 or Chapter 13 bankruptcy in Colorado Springs and Pueblo, call the Law Office of Diane K. Bross at 719-634-7734 to speak with a Colorado Springs Bankruptcy Attorney today.