Chapter 13 Can Help You Avoid Foreclosure And Keep Your Home

Chapter 13 bankruptcy can be a good option for people who have a regular income but are struggling to keep up with their bills. In Chapter 13 bankruptcy, mortgage arrears, credit card debts, medical bills and other unpaid debts are consolidated and the debtor repays a portion or all of the debt in manageable monthly payments over a three- to five-year period.

Depending on your income, expenses, family size and assets, you may only be required to pay back a small portion of the debts you owe to unsecured creditors. Even if the terms of your repayment plan result in a debt being only partially paid, your obligation for the entire debt will be eliminated at the end of the process.

Determining what amount you will have to pay creditors through your plan is very complicated and should be discussed with a lawyer. At Karns Law Group, we provide complete Chapter 13 bankruptcy representation to Rhode Island and Massachusetts clients.

Are You Eligible To File?

If your income is over a certain amount or you have disposable income, you will not be eligible to file Chapter 7 and will be required to file Chapter 13. Your eligibility to file either type of bankruptcy is determined by several factors, including:

  • How much debt you have
  • The type of debt you have
  • Your income and your expenses
  • Household size
  • Where you live and for how long
  • Your assets

Even if you have the option of filing Chapter 7, it may be in your best interest to file Chapter 13. Reasons include:

  • You have substantial debts that cannot be eliminated in bankruptcy — such as taxes or student loans — and need time to pay them off.
  • You need time to pay off mortgage arrears so that you don't lose your home to foreclosure.
  • You have assets that you would lose in Chapter 7, like a second home or car.

Contact Our Chapter 13 Bankruptcy Attorneys Serving Middletown, Providence And Rhode Island

Please call our office to schedule a free consultation. We will provide a thorough review of your financial situation, explain your options and offer our best recommendation for a solution. You can reach us locally by calling 401-239-1085, toll free at 888-KARNS-LAW or contact us via email to arrange an appointment.

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.