Denver Chapter 13 Bankruptcy Lawyer Christopher German
Chapter 13 bankruptcy is also known as “wage earner” bankruptcy. In order to file for Chapter 13, you must have a reliable source of income that you can use to repay some of your debt.
When you file for Chapter 13 bankruptcy, you must propose to the court a repayment plan that explains how you are going to pay back your debt over the next three to five years. The amount you’ll have to pay depends on how much money you earn, how much you owe, and how much your unsecured creditors would have received if you’d filed for Chapter 7 bankruptcy.
Ina Chapter 13 your debts must be within certain limits set by the federal government. You may not have more than a certain amount in either secured debt or unsecured debt. You’ll need to talk to a lawyer to learn what the current limits are.
If you have secured debt, a Chapter 13 gives you the option to make up missed payments (as on a car or mortgage) to avoid repossession or foreclosure. You can include these past due amounts in your repayment plan and make them up over a 3 to 5 year period. If you’re facing foreclosure or are simply behind in your mortgage payments, chapter 13 can be an option to save your home or vehicle. A chapter 13 bankruptcy filed before a foreclosure sale date allows you to delay the foreclosure and reorganize your debt. (Filing after a foreclosure sale leaves you at the mercy of the lender. At this point the lender can reinstate the original mortgage or agree to a new loan in lieu of the inevitable eviction.) Chapter 13 will also allow you to make up any past due monthly mortgage payments over a 3 to 5 year time frame (usually while simultaneously paying back unsecured creditors) to provide you more time to get current on your mortgage.
Chapter 13 is a great solution for homeowner that are upside down with their home. A Section 506 motion allows you to strip off a second mortgage can be filed in chapter 13 (but not a chapter 7) if the balance on the first mortgage alone exceeds the home’s fair market value. The “strip off” renders the junior lien(s) unsecured – now akin to easily dischargeable credit card debt or medical bills. Stripping off a junior lien is easier if accompanied by evidence of the property’s diminished value on the date of the filing, supported by a written appraisal. An appraisal is necessary when the lender cites to its own valuation and objects to the strip off.
An experienced Denver Chapter 13 Bankruptcy Lawyer, Christopher German has assisted over 1000 debtors in Denver and other areas of Colorado.
Get a fresh start by filing for bankruptcy with the Law Office of Christopher German.
Get your FREE CONSULTATION at 720-675-8070.
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