A Chapter 13 helps honest people, who through circumstances outside of their control, fell behind on financial obligations such as mortgages, rent, auto payments and other obligations. It also applies to people who have substantial debt but do not qualify for chapter 7 since they are above the median income. Also, due to other complex legal issues, a chapter 13 may be a better option for you than chapter 7.
In New Jersey the median income is $68,349 for a family of one, $82,283 for a family of 2, $103,634 for a family of 3 and $125,465 for a family of 4 and $9000 for each additional person in excess of a family of 4.
Chapter 13 is a reorganization for individuals. It allows honest people to save their homes, vehicles and apartments by preventing creditors from foreclosing on your home, repossessing your vehicle or trying to evict you. It also allows you to restructure any other debt that you may have including taxes and motor vehicle surcharges.
We have helped over 7000 people over the last 34 years get rid of crushing debt and get their lives back under control. Taieb law has helped stop foreclosure by reorganizing the money they were behind on their mortgage , prevent repossession or get back vehicles that were already taken and/or lower outrageous auto payments and stop eviction by doing a prompt cure under a chapter 13 plan.
Chapter 13 gives people with financial problems numerous options to restructure their debt. They can do a plan to catch up on mortgage arrears , propose a plan for a loan modification, pay the balance of an auto loan to lower the auto payment and substantially reduce your interest rate. Also, if your auto loan is over 910 days old you can propose a plan to pay back the replacement value of the vehicle plus pay a reduced interest rate which can really help you lower your payment. An other option is to do a sale plan to sell property. These are just a few examples of the different options that chapter 13 offers.
Taieb law has helped certain clients do numerous plans if one plan is unsuccessful. This gives people more options. You just have to give proper notice to creditors if you modify your plan.
Finally some people file chapter 13 because they have too much disposable income if they no longer have to make huge credit card payments , they are above the median income, or they would lose property in chapter 7 since they have non-exempt property that a chapter 7 trustee would sell.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 34 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.