Pennsylvania Chapter 13 Bankruptcy Lawyer
A Chapter 13 bankrutcy is often referred to as “reorganization.” In a chapter 13 bankruptcy, the debtor proposes a plan that lasts a minimum or 36 months and a maximum of 60 months. Under the plan, a monthly payment is made to the chapter 13 trustee who, in turn, pays your monthly obligations for such things as your house and your vehicles.
Catch up on you Monthly Bills
Chapter 13 allows a debtor to catch up with such things as mortgage payments over the life of the plan and thereby saving your house from foreclosure. However, you must file for bankruptcy protection before the Sheriff’s Sale is actually conducted.
Stop Collection Phone Calls. Stop Law Suits. Stop Sheriff's Sale.
Under both Chapter 7 and Chapter 13 bankruptcies, the “automatic stay” provision of the bankruptcy code takes effect. An automatic stay means creditors must stop all action in trying to collect a debt including telephone calls from creditors. Plus creditors must stop law suit proceedings including mortgage foreclosures and Sheriff’s Sales.
Benefits of Filing a Chapter 13 Bankruptcy
The benefits of Chapter 13 include the ability to protect assets like your house even if there is a significant amount of equity in it. It also allows you up to 5 years to become current with obligations that are not discharged. Typically, people with substantial equity or income and people whose homes are in jeopardy of being lost file under this chapter.
The Law Office of Wayne G. Johnson, Jr
337 West 6th Street
Erie, PA 16507
Telephone: (814) 459-7754 | Fax: (814) 459-8996 Email: Johnson@erie-attorney.com
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