Congress understood that there are many people who want to repay their creditors, but due to unforeseen hardships such as divorce, high medical bills, loss of a job, etc., they simply cannot repay them in a timely manner.
In short, filing Chapter 13 may allow you immediately Stop Home Foreclosure, Stop Auto Repossession, Stop Wage Garnishment, and Consolidate your debt into one monthly payment that you can afford. Filing your petition imposes an automatic stay (similar to a restraining order) and thereby stops any home foreclosure or automobile repossession action. In most cases, filing Chapter 13 will allow you to consolidate the following debts (thereby reducing your total monthly debt expenses) into one monthly payment we call the Chapter 13 Bankruptcy “Plan”:
- Mortgage Arrears or Home Equity (amount you are behind on your mortgage or home equity loan due to missed payments or escrow shortages)
- Your entire automobile payments (not only are we usually able to lower your monthly car payments and possibly interest, but we may be able to get you title to your automobile once the VALUE is paid, not what is owed – depending on when you purchased the automobile
- Past due property taxes
- Past due home owner association (HOA) dues
- IRS debt owed (may be wiped away depending how old it is)
- Credit card debt
- Department store debt
- Pay day loan, lines of credit, etc.
- Medical Bills
- Debt obligations ordered by a Marital Agreement subject to a Divorce
- Child Support arrears
- Student loans (will stop a wage garnishment and pay all or some of the student loan debt during the length of the Plan but any student loan debt not paid through the Plan will survive the bankruptcy, with accumulated interest)
- And most other types of debts
Contact an Attorney for Chapter 13 Bankruptcy in San Antonio
If you file Chapter 13, you will see that the law is usually much more powerful and gives you greater relief than do other alternatives such as Debt Negotiation, Debt Settlement, and Credit Consolidation. Why continue to suffer the day-to-day stress by trying one of these alternatives when filing Chapter 13 bankruptcy may finally give you the relief that you need to once again enjoy life?