Benefits Of Chapter 13 Bankruptcy in Middletown
Chapter 13 provides protections for the full range of all forms of debt, from mortgage debt to credit card debt. It also allows for the treatment of each debt in order of its importance to your family’s most essential needs. Prioritizing debt assures that your limited financial resources are focused on keeping your house, basic needs, and other priority obligations. The proper utilization of Chapter 13 protection has successfully reorganized hundreds of families throughout Middletown, CT.
Chapter 13 Creates an Automatic Stay on All Collection Actions
The proper filing of a Chapter 13 bankruptcy petition will create an automatic stay that stops all phone calls, lawsuits and collection efforts, including:
- Foreclosure actions in any state
- Lawsuits, even those brought to judgment or liens
- Tax Collections, including Federal, State or Local Tax Obligations
- Garnishments or Bank Attachments
- Court Judgments
- Liens or Garnishments
- Repossessions of any kind
To learn more about the protections of Chapter 13 bankruptcy in Middletown, CT, call our experienced Chapter 13 bankruptcy attorneys at 203-230-2233 or toll free at 1-888-249-3027, or fill out our simple online Contact Form.
Chapter 13 immediately stops all forms of foreclosure and allows three-to-five years to repay past mortgage payments. Under Chapter 13, saving your home requires no permission or agreement from your bank.
The filing of a Chapter 13 bankruptcy institutes an automatic stay stopping state court foreclosure actions, and places jurisdiction over the process and your home in the Bankruptcy Court. Chapter 13 allows for the repayment of missed monthly instalments in accordance with the Chapter 13 Plan of Reorganization created by specialized Chapter 13 legal counsel. Filing Chapter 13 bankruptcy replaces the foreclosure action controlled by bank attorneys with the Bankruptcy Court, which saves your home and provides for reinstatement of your mortgage over a three-to-five year period.
Protection and Proper Prioritization of All Debt Under Chapter 13
Chapter 13 provides full debt protection by covering all types of debt. This allows borrowers facing financial problems from a variety of creditors or collectors to address all of their financial concerns. Since most families experience numerous financial problems at one time, the complete coverage of Chapter 13 provides a full range of solutions.
Chapter 13 eliminates and restructures debts in order of their importance or priority. Chapter 13 provides for the elimination, reduction or restructuring of all forms of debt without exception and treats debts in order of their importance to your financial recovery. Properly crafted Chapter 13 Plans cover:
- Foreclosure solutions
- Credit card elimination or reduction
- Real estate tax repayment plans
- Mortgage repayments
- Tax elimination or repayment
It’s Never Too Late for Chapter 13 Protection
The proper filing of a Chapter 13 petition at any time before the end of state court foreclosure process stops all further foreclosure actions through the imposition of the automatic stay. Chapter 13 will stop any foreclosure effort right up to the final law day in a strict foreclosure and even after an auction, if the sale is not yet court approved.