Chapter 13 Bankruptcy involves the filing of a plan and monthly payments made to catch up on secured debts. An example would be if a Debtor is four months behind on her $1000 a month mortgage payments, and two months behind on her $500 per month credit card payments. The $5,000 owed would be paid back three (3) to five (5) years, while the Debtor (you) will maintain your normal mortgage payments. Some attorneys fees and costs can also be included in the plan. Chapter 13 can also provide for immediate driver’s licenses restoration when surcharges are the only bar to restoring licenses. Chapter 13 will stop sheriff’s sales, repossession, and provide needed debt relief. Generally, Chapter 13 is more involved as it provides for plan payments, where Chapter 7 does not provide for plan payments. Again, it is important to determine if you qualify.

Federal exemptions are available for both Bankruptcies which allow most clients to keep all of their personal property. While many agencies offer quick bankruptcies, we strongly recommend the use of an attorney who has experience in handling these matters, so your interests can best be represented. We also have the ability to run your credit to ensure that all of your debts are included in the bankruptcy.

Stripping of a 2nd Mortgage is possible within a Chapter 13 Bankruptcy (only) in New Jersey Federal Bankruptcy Court depending on the value of the home. Normally, so long as the value of the home is lower than the first mortgage payoff, the 2nd mortgage can be stripped. This involves a motion to strip the 2nd mortgage which is filed withing the Chapter 13 Bankruptcy itself. We can assist you in evaulating whether you qualify for the removal of the 2nd mortgage.

To answer a common question, yes it is possible to strip (remove) a 2nd mortgage in a Chapter 13 Bankruptcy. So long as the value of the home is lower than the amount of the 1st morgtage, it is possible to strip the 2nd mortgage. This normally involves a motion being filed within the Chapter 13 case itself. We have a great deal of experience in handling this matters.

Chapter 13 cases are often complicated. We regularly appear in the United States Bankruptcy Court and have a great deal of experience handling these matters. We are here to assist you.

More information on Chapter 13 Bankruptcy from the US Courts official website:

Chapter 13 Bankruptcy Basics
Chapter 13 Bankruptcy Forms

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