Chapter 13 Bankruptcy
- To learn more about Chapter 13 Bankruptcy Debt Limits – click here.
- What is Chapter 13 Bankruptcy?
- Chapter 13 Bankruptcy is a reorganization in which individuals utilize their income, and pay back a portion, or all of their debts (secured and unsecured credit debts). Below, I provide you with a basic overview of secured versus unsecured creditor debts.
- Ralph A. Ferro, Jr., Esq. will develop a tailored plan for your Chapter 13 bankruptcy case with a set timeframe of 5 years or less.
- 1 monthly payment to 1 person (Chapter 13 Trustee) satisfies your debts over the plan period.
- Allows you to reorganize past-due tax debt – STOP IRS liens and levies
- STOP FORECLOSURE Keep your home, and reorganize past due mortgage payments and property taxes.
What are the Chapter 13 Bankruptcy Debt Limits Now? Debt limits are issued by the Federal Government and apply to all states.
- Unfortunately, Congress did not take action to extend the debt limitations in effect from 2022 – 6/21/2024.
- The debt limits are now:
- $526,700 debt limit for unsecured debt
- $1,580,125 debt limit for secured debt
Individuals who were formerly eligible for Chapter 13 bankruptcy may now be forced to file a Chapter 11 Bankruptcy.
What were the Chapter 13 Bankruptcy Debt Limits between 6/21/22 and 6/21/24?
- $2,750,000 combined secured and unsecured.
What is a secured creditor / secured debt?
Secured creditor is an entity or person to whom the debtor owes money, and that debt is secured by collateral.
It gives the creditor security for the money they loaned you because the debt is backed by collateral. If you don’t pay, the creditor can take action to seize your collateral.
The creditors with secured claims in a Chapter 13 are treated specifically, whether you are keeping the collateral or surrendering it. The secured creditors are paid first before unsecured creditors in bankruptcy.
- Examples of collateral items are a house, equipment, or a car
A secured claim and the collateral must be specifically addressed in a Chapter 13 Bankruptcy Plan – pay and retain or surrender.
What is an unsecured creditor / unsecured debt?
Unsecured creditor is an entity or person to whom a debtor owes money, but there is no collateral. No collateral supports their claim. These are risky to the creditor.
- Examples are credit cards, personal loans, and medical debt. These are referred to as unsecured non-priority creditors.
Unsecured Priority creditor – these debts cannot be discharged. Although they have no collateral, they are not permitted to be discharged in a bankruptcy and must be paid back or continue to be paid.
- Examples are certain taxes, alimony, and child support.
- STOP immediately upon filing for a Chapter 13 Bankruptcy:
- Lawsuits
- Car repossessions
- Late fees
- Annoying creditor telephone calls
- Tax Sale
- Wage garnishments
- Home foreclosure
- Sheriff Sale (can be stopped even hours before the Sale)
- Debt interest
- Annoying collection letters
- Stop the Sheriff from taking your home – Stop Foreclosure with Ralph A. Ferro, Jr., Esq. NJ Bankruptcy Lawyer
- Don’t let the bank take your home – If you have past-due mortgage payments, Chapter 13 may be Best for you.
- We will do an emergency Chapter 13 Bankruptcy filing to stop the Sheriff’s sale.
- I represent you and am the attorney who works with you in Bankruptcy Court.
STOP PROPERTY TAX FORECLOSURE SALE - SAME DAY with a Board Certified NJ Bankruptcy Lawyer
- Don’t let a property tax sale take your home – If you have past-due property tax payments, Chapter 13 may be Best for you.
- We will do an emergency Chapter 13 Bankruptcy filing to Stop the Property Tax Foreclosure Sale
- Stop the Property Tax Foreclosure Sale by calling (201) 446-5904 Ralph A. Ferro, Jr., Esq. NJ Board Certified Bankruptcy Lawyer.
Why File Chapter 13 Bankruptcy Instead of Chapter 7?
- You are ineligible for a Chapter 7 bankruptcy due to high income or asset issues or a prior Chapter 7.
- Need to catch up with past-due mortgage, past-due property taxes, and/or car payments & want to stay in your home & keep your vehicles.
- There is equity in your home, and a Chapter 7 would not allow you to keep your home.
- Your disposable income allows you to pay back part of your debts, but not all of them.
Example: After your basic living expenses, you have disposable income of $1,000 per month, but your minimal monthly credit card payments are $2,500 per month.
In this situation, you have the ability to pay back something to your creditors, but not all that you owe
However, payments for your debts are evaluated upon what you can afford.
Chapter 13 Bankruptcy Attorney Law Firm
Choose a Smaller Law Firm for great results.
Call Ralph A. Ferro, Jr., Esq. Bankruptcy Lawyer Now: [201-446-5904]
Bankruptcy is a specialized field of law – At Ralph A. Ferro, Jr., Esq. Law Offices, we dedicate 100% of our practice to bankruptcy law.
In order to continually share expert bankruptcy advice with my clients, I stay up-to-date with current bankruptcy laws and cases.
This is evidenced by being Board Certified as an NJ Bankruptcy Lawyer by the American Board of Certification.
You want your doctor to be Board Certified – You should want your Chapter 13 Bankruptcy Lawyer to be Board Certified.
Read more to find out why you should choose a Board Certified Bankruptcy Lawyer.
My qualifications, expertise, and integrity are reviewed every 5 (five) years to ensure that I continue to meet or exceed rigorous certification standards. I was initially approved for Board Certification in 2015, reviewed and approved in 2019, and reviewed and approved in 2024.
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Chapter 13 Bankruptcy Blog
