Chapter 13 Bankruptcy
A Chapter 13 Bankruptcy could be exactly what You need to turn everything around. Contact an experienced Jamestown bankruptcy lawyer like Scott Humble.
Chapter 13 bankruptcies are actually wonderful, because they are so powerful. You see on the news all these companies filing Chapter 11 bankruptcy and keep on rolling. They keep in business, and they don’t lose their assets. The same is true for individuals who file a Chapter 13. It’s specifically designed so you lose absolutely nothing. Additionally, it was developed back in the Great Depression when there were so many foreclosures going on that the banks were actually looking at bankruptcy themselves, so what Congress did is they stepped in, and passed the legislation so that you can file a Chapter 13 bankruptcy.
Therefore, if you’re behind on your mortgage payments, or you’re behind on your real estate taxes, we simply go and put those into a Chapter 13 plan and allow you to pay them back. That is a wonderful procedure so that it protects your house. We also can use that on a vehicle to get that back for you, and put the payments through the Chapter 13. What that does is it does two things: It extends the term, and reduces the interest . That way you can keep all of your assets, even if you’re in trouble. One more thing about a Chapter 13 is income taxes.
If the income taxes are older than, say, three and a half years, it’s possible to simply discharge those taxes, but generally speaking, that’s not the case. Income taxes have to be paid back, whether it’s federal or state, and we put those income taxes into a Chapter 13 plan, allow you to pay them back over 60 months, and there’s no interest or penalties when you do that.