If you own a home and have missed a few payments on your mortgage, your house may be at risk of being foreclosed. You may have done some research and came across the premise that filing for a Chapter 13 bankruptcy can help you keep your home. In my experience, people who are considering filing for bankruptcy, but who have not yet filed, feel the need to notify their creditors of their intentions right away. People are under the impression that if a certain creditor is aware that you soon plan to file, that will prevent them from foreclosing on your home or repossessing your car.
There are ways to prevent a creditor from foreclosing on your home or repossessing your car, but telling them you are going to file for bankruptcy is not one of them. Truth is, telling a creditor that you plan to file a Chapter 13 will probably speed up the repossession and foreclosure, rather than prevent it. In New York State, if your vehicle is repossessed before you file your bankruptcy petition, the creditor can keep your car unless you are able to pay off the loan in one full lump sum. However, if you call the lender and provide them with your case number, after you have already filed, the creditor cannot repossess the vehicle or sell your home. Do keep in mind, that filing for Chapter 13 bankruptcy is no simple task. As part of your filing, you are required to file Schedules, Statement of Financial Affairs, a Chapter 13 plan, and numerous other documents.
Chapter 13 is the chapter of choice for people who make a consistent income. This chapter allows you to catch up on missed mortgage and car payments in order to avoid foreclosure of a home or repossession of a vehicle. The goal of a Chapter 13 is to have a monthly payment plan “confirmed” by the court. The monthly plan spreads out any missed payments over many months so you can catch up and stay current with your obligations. According to the United States 2011 Court Report, confirming and completing a Chapter 13 plan is very hard to achieve, even when represented by an attorney. Completing a Chapter 13 can take from 36 to 60 months, and only an estimated 55 percent attorney-represented debtors manage to get their plans confirmed. The number of pro-se debtors who are able achieve Chapter 13 confirmation is at a mere 4 percent. What this number means is that only 4 out of 1,000 self-represented debtors are successful in having their plan confirmed. Therefore, if you are considering filing for Chapter 13 without an attorney, the odds are not in your favor. If you have not consulted with a bankruptcy lawyer yet, you need to make an appointment with an experienced chapter 13 bankruptcy attorney as soon as possible if your real or personal property is at risk. Most bankruptcy lawyers offer free consultations, and can include legal fees in your Chapter 13 payment plan.
Mishiyeva Law- Bankruptcy Lawyer NYC 80 Wall Street New York, NY 10005 (646) 736-6328 kmbankruptcylawyerny.com