Carol Stream Bankruptcy Lawyer Touts Chapter 13

The other chapter of the bankruptcy code is Chapter 13.  Chapter 13 is known as debt reorganization.  It involves the monthly payment for the next three to five years to a Chapter 13 trustee who just like a dealer in poker will dish out a piece a piece of that monthly payment to the creditors pro rata or according to a hierarchy over the course of the three to five year case.  The most common use of a Chapter 13 is to save a home that has fallen into foreclosure.  The amount of the mortgage arrears, that is the amount that the debtor has fallen behind on his or her mortgage, can be repaid over the next three to five years through a Chapter 13 trustee.  In addition to the trustee payment the debtor must continue to make his current first and/or second mortgage payment on his real estate.  In terms of vehicle debt the entire amount of a financed vehicle is paid through the Chapter 13 trustee.  Thus the debtor will not be making a car payment directly to his prior auto finance company.  All the payments for financed vehicles are paid through Chapter 13 trustee along with all other miscellaneous debt including the mortgage arrears if it is a home savers case. 

Carol Stream Bankruptcy Lawyer