Chapter 13 Bankruptcy Restructuring. Chapter 13 Bankruptcy Restructuring is when you reorganize your secured and unsecured debt. Secured debt is credit that was extended to you with collateral that can be taken by the banks if you fail to make your payments. Unlike Chapter 7 Bankruptcy Restructuring where debt is liquidated, Chapter 13 Bankruptcy Restructuring is used to pay back creditors on terms that are favorable to you and your family. The benefit of filing Chapter 13 (aside from payments you can afford) is that it allows you to keep the property that has become delinquent through non-payment. 

 

Through Chapter 13 Bankruptcy Restructuring you can stop the foreclosure of your home or the repossession of your car, boat, RV or other vehicle.  A Chapter 13 repayment plan can allow you to take any past due mortgage payments or delinquent property taxes and pay them back to the mortgage company (or other secured creditor) with terms that are favorable to you, the debtor, rather than the unrealistic payment terms the creditors wish to impose.

 

Chapter 13 Bankruptcy Restructuring also allows you to restructure and pay back debts that may not be dischargeable in a Chapter 7 Bankruptcy. For example, Chapter 13 Bankruptcy Restructuring allows you to repay delinquent income taxes and back due child support (debts that cannot be liquidated under Chapter 7).

 

Best of all, in many cases, Chapter 13 prohibits wage garnishment.

 

Bankruptcy Restructuring is complex and stressful. You should always seek legal help when you feel you are headed towards bankruptcy. At Tuttle Legal, we focus on Chapter 7 and Chapter 13 personal bankruptcy law for residents of Hatfield, Souderton, Quakertown, Collegeville, Harleysville, Montgomeryville, Chalfont, Doylestown, Wayne, The Main Line and surrounding areas.

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