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Benefits of Chapter 13 Bankruptcy in Bridgeport
Chapter 13 is a bankruptcy court protection that allows for the elimination, reduction or repayment of all forms of debt for individuals seeking to gain control and reorganize their financial problems in accordance with their regular monthly income and expenses. Chapter 13 Plans of Reorganization address all forms of debt in order of importance prioritized through a carefully crafted and customized Chapter 13 Plan. At the Law Offices of Neil Crane, our Bridgeport, CT office has been one of the largest providers of successful Chapter 13 relief since 1983.
Chapter 13 is the leading means for saving homes in the Bridgeport area and allows comprehensive relief for all forms of debt in any stage of collection or foreclosure.
To learn more, call us today at 203-230-2233 or toll free at 1-888-249-3027, or fill out our online Contact Form for a prompt response from a Bridgeport Chapter 13 attorney.
The Automatic Stay of Chapter 13 Stops All Types of Debt Collection
There are many benefits to filing for Chapter 13 bankruptcy, including the immediate stoppage of all creditor calls, collection actions, lawsuits or foreclosures through the creation of an automatic stay. In addition to the imposition of the automatic stay, Chapter 13 allows for the elimination, reduction or restructuring of all forms of debt(usually within three to five years), including:
Credit Card Debt Elimination: As unsecured general and unproductive claims, these types of debt are always subject to elimination or reduction.
Income Tax Obligations: Older state and federal income taxes are subject to elimination or reduction. More recent taxes can be repaid without future penalties or charges over a three-to-five year period.
Secured Obligations: These are generally mortgage and real estate obligations. They are paid in order to save homes from foreclosure. For families saving homes these are highest priority debts and need to be repaid first in order to prevent home loss.
Removing Second Mortgage Liens (Lien Stripping) and Attachments in Chapter 13
Chapter 13 allows for the removal of certain secured obligations through lien stripping of second or third mortgage liens or attachments of real estate to the extent that the value of the collateral - usually homes - does not provide equity for the line position. This means that many so called "underwater homes" will often have additional mortgages that can be removed. Removal allows these liens to be treated as unsecured debt which can be eliminated or reduced on a permanent basis. This lien stripping procedure is a very powerful tool, particularly in our present real estate economy, and is not available in Chapter 7 bankruptcy.
Chapter 13 allows for lien stripping of mortgages, liens and attachments that do not have underlying collateral value sufficient to treat these encumbrances as secured obligations. This powerful tool is available without consent of the mortgage holder only in Chapter 13.
To learn more about the benefits of Chapter 13, call our experienced Bridgeport, CT Chapter 13 attorneys and see how Chapter 13 can provide you the comprehensive relief you need. Call us at 203-230-2233 or toll free at 1-888-249-3027 or fill out our simple online Contact Form today.