Ontario Chapter 13 Bankruptcy Lawyers
Sometimes finances can be like a Catch-22. You may be too poor to pay your bills but earn too much money to qualify for assistance. This often is the case for people looking to file for bankruptcy. They may not pass the means test, so they feel defeated. But the good news is that Chapter 13 bankruptcy may be able to help you.
Chapter 13 allows you to keep your secured assets, such as your home or car, while eliminating unsecured debt like credit cards and medical bills. You will work with a repayment plan that will pay off vehicles, personal loans, and other debt over a three-year or five-year period.
Chapter 13 bankruptcy can give you a second chance to turn your financial situation around. Want to learn more? Contact the Ontario Chapter 13 bankruptcy lawyers from Wadhwani & Shanfeld to schedule a consultation.
Is Chapter 13 Bankruptcy Right for Me?
There are two main types of bankruptcy: Chapter 7 and Chapter 13. Here are some reasons why a person should choose Chapter 13:
- They do not pass the means test for Chapter 7 bankruptcy because their income is too high.
- They want to repay debt through an affordable payment plan.
- They want to keep their home and protect it from foreclosure.
- They want to preserve assets or property that may be liquidated in a Chapter 7 bankruptcy.
- They want the protection and flexibility offered by Chapter 13, as they can make payments on past due debts without penalties.
- They want to show they are responsible, as they are still committed to paying their debts.
What to Know About Chapter 13 Bankruptcy
Chapter 13 bankruptcy is more complex than Chapter 7, as there are complex rules for how different types of creditors are repaid over the period of 3-5 years. However, these rules provide debtors with many advantages and can help them with vehicle loans, home mortgages, income tax liens, and unprotected assets. There are debt limits to consider. When filing for Chapter 13, the limit is $394,725 for unsecured debts and $1,184,200 for secured debts
Keep in mind that even though you are repaying some of your debts, Chapter 13 bankruptcy still impacts your credit. It stays on your credit report for up to seven years. However, you may be able to rebuild your credit after a couple years.
Staying on top of the repayment plan can also be a challenge. It can be hard to complete your plan if you are suffering circumstances such as divorce, job loss, or health issues. A modification may be possible in these situations.
Contact Wadhwani & Shanfeld Today
If your monthly payments on mortgages, credit cards, and other debt have become too much, Chapter 13 bankruptcy can help. You can get your debts reorganized and get a repayment plan that works with your budget.
The team at Wadhwani & Shanfeld can help you make life more manageable. To get started, schedule a consultation with our experienced Ontario Chapter 13 lawyers. Give us a call at (800) 996-9932.