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NYC Chapter 13 Bankruptcy Attorney

You may have found yourself in a situation in which you are unable to keep pace with all of your financial obligations. Perhaps you, or a member of your family, experienced a serious medical issue. If that occurred, you may face what really has become a seemingly insurmountable mountain of debt. You feel like you need breathing room, or some sort of better structure, to handle your debts.

You may be like many people and have explored a number of alternatives to attempt to get your financial house in order. Thus far, you may not have been successful in this endeavor. If this describes you, and your situation, you most definitely are not alone.

Each and every day, many people in New York City struggle with making ends meet, only to fall further behind with their creditors. The reality is that you do have an option available to you that can provide structure to your debts and permit you the ability to better address your financial obligations. You may want to consider filing a Chapter 13 bankruptcy case.

Two Types of Bankruptcy

What many consumers, people just like you, do not realize is that there are two different kinds of bankruptcy available to consumers in the United States. The better known of these two different types of proceedings is a Chapter 7 bankruptcy. Through a Chapter 7 bankruptcy, a consumer obtains what is known as a discharge of some or all of his debts. In other words, a consumer is no longer legally responsible for some or all of his or her debts.

There is also a Chapter 13 bankruptcy. In a Chapter 13 case, a debtor like you does not obtain a discharge of debt. Rather, he or she remains responsible for these obligations. However, the bankruptcy court establishes a payment plan through which a person like you pays off his or her debts over a specific period of time.

You have to be in pretty serious financial condition to qualify for a Chapter 7 bankruptcy. You might have financial challenges, but they may not rise to the level f being sufficient enough to justify a complete elimination of your obligation to creditors. That does not mean that you do not qualify for a Chapter 13 bankruptcy.

Chapter 13 Bankruptcy Payment Plan

As mentioned, at the heart of a Chapter 13 bankruptcy is a payment plan. The court, through the bankruptcy trustee, develops a plan through which you make monthly payments. The payments are made to the bankruptcy trustee, who in turn makes individual payments to your creditors.

The court determined the amount you will need to pay into the bankruptcy plan each month as well as how much each individual creditor will receive. The court also determines how long the plan will be in place, which is largely based upon how long it will take for you to satisfy the obligation to your creditors. The longest a Chapter 13 bankruptcy plan can exist is five years.

Automatic Stay Order

One of the elements that both a Chapter 7 and Chapter 13 bankruptcy have in common is what is known as an automatic stay order. When you file a Chapter 13 bankruptcy case, the court issues an automatic stay order. This decree stops your creditors from taking any type of collection activity against you. Creditors can do nothing more to collect money directly from you without the express permission of the court. Ultimately, if the Chapter 13 plan is approved, your creditors are pad through money you pay to the bankruptcy trustee.

A skilled, experienced NYC bankruptcy attorney can provide you with details about your legal rights and the bankruptcy process. Contact the specialists at Morgan Legal Group PC to help guide your path.

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