A Chapter 13 bankruptcy is a debt re-organization plan, restructuring your finances into an affordable monthly payment. It protects you from collection efforts, and gives you an opportunity to save your home and/or automobile from foreclosure or repossession, as well as eliminate nearly all unsecured debt by the end of the plan. You can even lower your car payments, and get better interest rates, by filing Chapter 13 bankruptcy. It's a very powerful tool at our disposal, which can help you keep assets, regain control of your finances as a whole, and get the meaningful fresh start that you deserve.
Why choose Chapter 13 Bankruptcy?
If you owe debt not dischargeable in a Chapter 7 (taxes, child support, etc), have liens larger than the value of your assets, are behind on property payments, or have assets worth more than their exemptions, then your attorney may recommend filing Chapter 13.
The Chapter 13 plan lasts anywhere from three to five years, and the amount of the monthly payment is based on both your income and the debts that are to be repaid. The consolidated monthly payments are made to your Trustee, who distributes this money to your creditors according to an individualized Chapter 13 Plan. Remember, not all debt has to be repaid, just that which is laid out in the plan (eg is affordable in your budget).
As an added benefit, most secured debts enjoy a reduced interest rate. The Chapter 13 Trustee will not seek to sell your assets, though if you have a large amount of property, this could result in an increased monthly payment.
Filing bankruptcy under Chapter 13 is an especially complex legal process that necessitates an experienced bankruptcy attorney. Thankfully, Andrew Magdy is well versed in the process and will be there for you every step of the way.
Alternatively, you may qualify for a Chapter 7.
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Generally, YES, I can get your car back.