A Chapter 13 bankruptcy provide
consumers with immediate financial benefits. Unlike a Chapter 7
bankruptcy, under a Chapter 13 a debtor restructures their debts. It
gives a debtor the ability to repay over a period of 36-60 months
(3-5 years), all mortgage arrearages, late fees, escrow shortages,
etc. All unsecured creditor debt can usually be negotiated down to a
more affordable amount depending on the debtor's individual
situation.
The most beneficial part of a Chapter 13 plan is ability to strip off all second mortgages, lines of credit and other liens from your principal residence. You may also be able to reduce student loan payments, wipe out IRS debt, reduce the debt owed on automobiles and significantly reduce principal balances on investment properties, pay off those properties between 36 to 60 months.
In order to strip off a second mortgage from your home, the property's market value must not exceed the amount owed for the first mortgage. As it relates to a debtor's investment properties, under a Chapter 13 plan you are able to strip off any second mortgages or credit lines, and even reduce the principal balance of the first mortgage on each property down to the property's current market value, payable at a low fixed interest rate, and under one affordable monthly payment.
Also, if a property is in foreclosure, once a debtor submits a Chapter 13 plan and stays current on the payments, the lender cannot proceed with a foreclosure of any properties listed in the plan.
As it relates to motor vehicles, if you have been paying your vehicle for more than 920 days then you may be able to cram down the vehicle's current debt down to the vehicle's current market value, payable at a low fixed interest rate, and under one affordable monthly payment between 36-60 months.
If you owe more on your first mortgage than the home is worth and have a second mortgage or line of credit, or if you own financed vehicle or investment properties and owe more than they are worth, then you may be a candidate to file a Chapter 13 bankruptcy.
The most beneficial part of a Chapter 13 plan is ability to strip off all second mortgages, lines of credit and other liens from your principal residence. You may also be able to reduce student loan payments, wipe out IRS debt, reduce the debt owed on automobiles and significantly reduce principal balances on investment properties, pay off those properties between 36 to 60 months.
In order to strip off a second mortgage from your home, the property's market value must not exceed the amount owed for the first mortgage. As it relates to a debtor's investment properties, under a Chapter 13 plan you are able to strip off any second mortgages or credit lines, and even reduce the principal balance of the first mortgage on each property down to the property's current market value, payable at a low fixed interest rate, and under one affordable monthly payment.
Also, if a property is in foreclosure, once a debtor submits a Chapter 13 plan and stays current on the payments, the lender cannot proceed with a foreclosure of any properties listed in the plan.
As it relates to motor vehicles, if you have been paying your vehicle for more than 920 days then you may be able to cram down the vehicle's current debt down to the vehicle's current market value, payable at a low fixed interest rate, and under one affordable monthly payment between 36-60 months.
If you owe more on your first mortgage than the home is worth and have a second mortgage or line of credit, or if you own financed vehicle or investment properties and owe more than they are worth, then you may be a candidate to file a Chapter 13 bankruptcy.
