CHAPTER 13: YOUR SECRET WEAPON AGAINST CREDITORS
Chapter 13 can stop foreclosure, repossession, garnishment, collections actions, and restore your utilities. It can give you the lifeline you need to survive and help you get back on your feet. Chapter 13 is a payment plan that lasts 36 to 60 months. Most Chapter 13 plans pay as little as 0% back to unsecured creditors such as credit cards, medical bills and payday loans. In addition, Chapter 13 is only on your credit report for 7 years (as opposed to Chapter 7, which is on there for 10 years).
Chapter 13 can get you caught up on what you’re behind on your mortgage payments – even if you’re close to foreclosure. This will help you avoid having to come up with a large lump sum to become current, and allow you to afford day-to-day expenses.
Are you behind on car payments? Has your car recently been repossessed but not sold? Chapter 13 can enable you to (a) stop repossession and (b) get your car back from the creditor who took it, allowing you to pay it off over time and sometimes pay the value of the vehicle vs. the balance. You can almost always lower the interest rate as well.
Get a Fresh Start
Chapter 13 can pay as little as ZERO % to unsecured creditors, just like a Chapter 7. It can reduce tax debt, stop student loan garnishment and restore your utilities. And when you’re done, you’ll receive a discharge of your unsecured debts just like in Chapter 7. Have you filed a Chapter 7 in the past 8 years? No problem – you can still file a Chapter 13 and seek bankruptcy protection.