Chapter 13

What Chapter 13 Bankruptcy Can Do for You

It’s easy to find yourself facing a mountain of debt. High interest rates take their toll. Send in a payment late and you are hit with heavy fees and penalties. Before you know it, your debt has become unmanageable.

At the law firm of Greenwald & Hammond, P.C., we help people in the metro Denver area file for Chapter 13 bankruptcy. To discuss your specific debt situation with an experienced Denver Chapter 13 bankruptcy lawyer, please contact our Denver office online or call 303.832.2550.

Who Should Consider Filing for Chapter 13 Bankruptcy?

Chapter 13 debt relief may be an option for you if:

  1. You have stable income from wages or other sources
  2. You do not meet the income requirements for filing Chapter 7 personal bankruptcy or you have special assets that you do not want to see liquidated
  3. You face overwhelming credit card bills, court judgments, medical debt, and are behind on your mortgage payments or car loan
  4. You have filed bankruptcy and received a discharge in the past eight years

In a Chapter 13 consumer bankruptcy, you and your attorney will work with a bankruptcy trustee to develop a payment plan for the next 36 to 60 months. The Chapter 13 plan is usually based on what you can afford to pay, after your normal living expenses are deducted from your income. (You can even continue to contribute toward your retirement account.)

Most bankruptcy filers are responsible to pay back only a portion of their overall debt; sometimes only pennies on the dollar. Almost no one is forced to pay back 100 percent of their debt, but for those few who do, there are still significant benefits.

Has another attorney told you that you do not qualify for Chapter 13 bankruptcy? He or she could be wrong. Make sure this assessment is correct. Contact us at Greenwald & Hammond.

What Chapter 13 Bankruptcy Can Do for You

So many people think Chapter 13 means paying off all your debt with a payment plan. That is rarely, if ever, the result of filing for Chapter 13 bankruptcy. Some of the benefits of a Chapter 13 bankruptcy include:

  • You can catch up on past due mortgage payments to save your home
  • You can strip off or avoid a second mortgage if you qualify
  • You can pay back taxes without penalty, late fees or interest, and
  • You can eliminate all unsecured debt, including credit cards and medical debt

Because the plan payment is based on your necessary expenses, car and house payments become manageable because they are included in your budget. It is also possible, under Chapter 13, to “strip off” a second mortgage. If your home is worth less than the value of the first mortgage, the second mortgage often can be discharged with your other unsecured debt.

Tax debt that is non-dischargeable will be addressed in the Chapter 13 plan.

As you progress through your Chapter 13 repayment plan, making your payments in full and on time, you are rebuilding your credit rating. By the time your Chapter 13 repayment plan is complete, you are well on your way to a brighter financial future.

Contact Our Denver Office Today for Aurora Debt Repayment Plan Attorneys

The lawyers at Greenwald & Hammond are dedicated to helping clients like you get out of overwhelming debt. Contact the Denver Chapter 13 bankruptcy office of Greenwald & Hammond today to schedule a free initial consultation.