The Law Office of Richard S. Feinsilver
A New York Bankruptcy Law Firm

Facts About Chapter 13 New York Bankruptcy Law

If you are considering filing Chapter 13 bankruptcy, but have steady disposable income to pay a portion of your debt, or you are in foreclosure, the Law Office of Richard S. Feinsilver can help you file a petition for protection under Chapter 13 of the U.S. Bankruptcy Code.

NY Bankruptcy Law - Filing Chapter 13 Bankruptcy in New York

Chapter 13 of the U.S. Bankruptcy Code is designed primarily for residential homeowners (including co-ops and condos), and allows an individual or married couple to repay all, or a portion of their debts under the supervision and protection of the United States Bankruptcy Court. Chapter 13 is designed for working people with steady incomes who want to pay their debts but are currently overwhelmed with bills, judgments, lawsuits, and other financial issues. Ask us about all aspects of Chapter 13 bankruptcy including filing Chapter 13 Bankruptcy in Brooklyn, Queens, Nassau and Suffolk Counties of New York, Chapter 13 dismissals and the possibility of refiling a new petition, and using Chapter 13 Bankruptcy to consolidate your debt more efficiently than dealing with a debt consolidation company.

A Chapter 13 bankruptcy plan allows an individual to repay mortgage arrears and some, or all, other debts, over a three to five year period. While a Chapter 13 plan is in effect, creditors cannot either start or continue their collection efforts, and they must accept what the plan pays them. Any individual, or married couple, even if self-employed, can receive Chapter 13 relief if they owe less than $1,000,000.00 in secured debt (i.e. mortgages, car loans, equity loans), and less than $310,000.00 in unsecured debt.

Upon the successful completion of a Chapter 13 repayment plan, the debtor receives an official discharge, which extinguishes all obligations to make further payment toward their unsecured debts, even though these creditors may not have been paid in full. In fact, many people repay their unsecured creditors no more than 10, 20 or 30 percent of the total amount owed. Chapter 13 helps save the homes of thousands of Americans every year.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has changed a number of the eligibility requirements to file a petition for protection under Chapter 13.

For information about the new Bankruptcy Law and its affect on you, please read our latest Bankruptcy Newsletter.