A Chapter 13 bankruptcy is categorized as a reorganization bankruptcy. This solution allows the debtor (you) to consolidate many of your debts into one easy payment plan, allowing you to protect your assets or restructure your debt. This is an option for those who might not qualify for Chapter 7 due to either having too many assets or you make too much money.

Chapter 13 is specifically designed to help you save your home from a foreclosure, because consolidating your debt can allow you to catch up to your delinquent mortgage payments. If you owe more on your first mortgage than your house is currently worth, you will be able to strip any junior mortgages you have on that property. Additionally, you may want to take advantage of the Modification Mediation Program that the Jacksonville Bankruptcy Court recently implemented.

In your reorganization, you may be able to take other secured debt, such as, car payments, house payments, boat payments.. Money you owe on the objects you can touch.. and reamortize them into smaller, and more manageable monthly payments, protecting your assets while paying off your debt. Furthermore, if you are upside down on your car, and you’ve owned the vehicle for more than 910 days (2.5 years), we will be able to cram down the value of your car to what it is currently worth – allowing you to then readjust your payment plan.

If you think you might fall into this category, you should call a bankruptcy attorney right away. This is a complicated reorganization process, and the best thing you could do is get help. And the most convenient feature to filing for Chapter 13 Bankruptcy is your lawyer fees are financed through the payment plan, so that’s another bill you won’t have to worry about!

If you are bordering on bankruptcy, upside down in debt, being hounded by creditors, or facing foreclosure, call Eileen Dolaghan to set up a free consultation so she can help you find the best solution to your financial problems at 904-354-4935.