Chapter 13 Bankruptcy Attorneys in New York City

How Chapter 13 Bankruptcy Can Help You as an individual

Chapter 13 bankruptcy is often referred to as reorganization bankruptcy. Reorganization will enable the court to contemplate modifying each of your debt payments and will provide you with an opportunity to establish a time frame under which to eliminate your debt.

It is crucial that you work with a knowledgeable New York Chapter 13 bankruptcy lawyer who will put your best interests at the forefront of your case. At Jacobs P.C., our bankruptcy attorneys go above and beyond to achieve results for our clients. 

When you reach out to us, we take the time to learn your financial situation and determine how we can best help you overcome your debt. Rest assured you will be treated as a person, not a case number.

Contact our office online or call us today at (347) 952-7030 to learn more.

The Chapter 13 Bankruptcy Process

Once you have filed a petition for chapter 13 bankruptcy, you will be required to attend a hearing. The purpose of this hearing is to review the payment plan before the bankruptcy judge. Once payment has begun, you will be protected from creditor harassment and creditor actions against you.

In order to file for reorganization bankruptcy, you must prove you have income and can make the required payments.

You will be required to:

• Complete and file all necessary documents
• File statements on your current financial situation
• The cost of debt must not exceed your desire to repay that debt

Payment

The initial payment on each debt will be due 30 days from the filing. Monthly payments will be due based on the terms of the plan.

Eligibility

In order to qualify for Chapter 13 bankruptcy:

• Debt Limit: You must have less than $1,010,650 in secured debt and $336,900 in unsecured debt.
• Debtor Status: Only individuals qualify for Chapter 13 bankruptcy, including those who are self-employed or operate an unincorporated business.
• Residency: You must be a U.S. citizen or have a domicile in the U.S. to qualify.
• No Recent Bankruptcies: You cannot have had any Chapter 7 or Chapter 13 bankruptcy filings within the past 180 days.
• Stable Income: You must have a regular source of income. If you're married and filing jointly with your spouse, they must have regular income as well.

The Chapter 13 Repayment Plan

The payment plan is at the center of a chapter 13 bankruptcy case. The following is important to consider as we go through this process:

• Partial repayment plans: It is unusual to pay your unsecured creditors in a reorganization plan in an amount that is less than full.
• Payments by chapter 13 trustee: Unless you propose a longer payment plan and capture the interest.
• Leases and secured loans: If your plan pays less than full to a secured creditor, the plan must submit a written description of the treatment of the creditor's collateral.

There are many advantages of filing for Chapter 13 bankruptcy. For one, reorganization bankruptcy provides an opportunity to save your home from foreclosure. When you file for Chapter 13 bankruptcy the foreclosure action stops at that time. Once the court approves the payment plan, reaffirms the mortgage debt, and your back monthly payments have been made, the foreclosure action may be dismissed.

What Is the Bankruptcy Trustee's Role in a Chapter 13 Case?

When you file for Chapter 13 bankruptcy, a bankruptcy trustee will be appointed to your case. The trustee is responsible for reviewing the terms of your proposed repayment plan, as well as collecting your payments and distributing them to your creditors. They will also ensure that you are in compliance with the bankruptcy process.

Some of the trustee's primary responsibilities include:

• Evaluating your financial documents, including your income and expenses
• Examining your repayment plan and ensuring it is feasible
• Identifying any nonexempt property that may be sold to repay your creditors in part
• Conducting the initial creditor meeting and potentially filing objections on your creditors' behalf
• Ensuring the disbursement of your monthly plan payments to your creditors
• Approving or denying a request to modify your Chapter 13 plan
• Reviewing any financial changes that occur during the repayment period
• Ensuring your full compliance with the bankruptcy laws and addressing any issues that arise during your case
• Complete an audit of your bankruptcy estate and any claims filed by your tax debtors

Why Choose Jacobs P.C. for Chapter 13 Bankruptcy?

At Jacobs P.C., we know that Chapter 13 bankruptcy can be a daunting and intricate journey. Our dedicated team of attorneys specializes in guiding clients through this complex process with expertise and compassion. We work closely with you to evaluate your financial situation, determine eligibility, and craft a personalized repayment plan that aligns with your needs and goals.

Our in-depth knowledge of New York's bankruptcy laws ensures that you receive accurate and effective legal advice tailored to your unique circumstances. We focus on clear, transparent communication, keeping you informed and confident every step of the way. With Jacobs P.C., you have a committed partner dedicated to helping you regain control of your finances and achieve a fresh start.

Ready to take the next step? Contact Jacobs P.C. or call us today at (347) 952-7030 to schedule a consultation and start your journey to financial relief via Chapter 13.