Getting a Fresh Start Through a Reorganization Plan
One of the most devastating impacts of the pandemic has been its effect on businesses and workers. If you’ve been furloughed or permanently lost your job, and you’re struggling to make ends meet, you may be considering bankruptcy as a way to find relief from creditors and get your finances in order. To permanently discharge your debts through a Chapter 7 bankruptcy filing, you must pass a “means test.” If you don’t qualify for Chapter 7 relief, your remaining option is a reorganization or restructuring of your debt under Chapter 13. Here’s what that looks like.
An Overview of Chapter 13
When you file for protection under Chapter 13, you have the opportunity to work with your creditors to establish new payment arrangements. An automatic stay goes into effect immediately when you file your bankruptcy petition, which means you won’t receive any more phone calls or letters from debt collectors and won’t have to worry about creditors filing legal action against you.
You and your attorney will identify all your outstanding debts and put together a proposed plan for repaying your creditors over a three-to-five-year period. Often, when negotiating new payment arrangements, you can get a creditor to waive prior late fees and penalties.
The proposed plan must be submitted to and approved by your creditors and the bankruptcy court. If approved and put into action, a Chapter 13 petition provides the protection of the automatic stay for the full three-to-five-year repayment period, provided you honor your agreements. As an bonus, in a Chapter 13 filing, you don’t have to turn over any property to the bankruptcy court. You can keep everything.
Contact the Cintron Firm
At the Cintron Firm, LLC, we offer more than 14 years of experience to people in New Jersey facing a broad array of legal challenges. Attorney Mark Cintron has worked as a prosecutor and has extensive courtroom experience, so he’s always ready, willing, and able to protect your interests before a judge or jury. We are currently available to talk with you by phone, text message, or online videoconference. Contact our office online or call us at 201-791-1333 or (201) 535-0323 to set up an appointment.