CHAPTER 13 BANKRUPTCY

The two most notable features of bankruptcy under Chapter 13 are: the ability to save your home from foreclosure, and availability to many debtors. Our bankruptcy attorneys can let you know whether this may be an option for you.

While Chapter 7 now requires a means test to qualify, those who do not qualify can generally file under Chapter 13. Chapter 13, however requires that your income is high enough to comply with a payment plan.

If your income according to the means test is higher than similar families in your region, you may not be allowed to file under Chapter 7. This is to prevent people who have the ability to pay their debts from discharging them.

Chapter 13 is known as "wage earners' bankruptcy." You will be relieved of many debts but must promise to make regular payments on others, for three to five years. While many filers would rather get the "fresh start" of Chapter 7, Chapter 13 has advantages. If your home is in foreclosure, filing stops the process. If your income is determined to be high enough to make the mortgage payments, you can keep your home. Your bankruptcy filing also disappears from your credit report more quickly, after seven years as opposed to 10 with Chapter 7.

Second (or Third) Mortgage Lien Stripping
A common issue for an individual nowadays is the situation where a homeowner has a first and second mortgage on a primary residence and is facing bankruptcy. This individual may have the ability to save his or her home. In a Chapter 13 a debtor can strip away his or her junior liens IF the value of his or her house is less than the amount owed on the first mortgage.

We can help you negotiate a payment plan that minimizes the negative impact on your financial security during the debt-reduction process. Kurland & Grossman, P.C., is a concentrated firm with decades of experience assisting clients with issues related to family law, bankruptcy, real estate and estate planning.

To discuss your situation in an atmosphere of professionalism and dignity, please contact the bankruptcy lawyers at our office in Chelmsford today. Your initial consultation with an experienced family law attorney will be free and completely confidential.