Law Offices of
Steven P. Haddad, P.C.

TOLL FREE: 1-888-4SPH-LAW
Fax: 201 798 3324 Jersey City
Fax: 732 933-3536 Red Bank

A Chapter 13 bankruptcy, also referred to as a “wage-earner” plan or “reorganization,” works well for consumers with mostly secured debt.  Chapter 13 is called a wage-earner plan because you must have a source of income to qualify for Chapter 13 relief.  Under Chapter 13, you will be able to keep your secured property, such as mortgaged homes and financed cars, and the court will establish a time frame, usually five years, during which you will make agreed-upon payments to your creditors.  Your monthly payments under Chapter 13 will usually be significantly lowers than the original payments and at much lower or no interest rates.  At the end of the agreed upon time frame, any remaining debt will usually be discharged.  If you are earning money but you are unable to make minimum monthly payments on your debt, Chapter 13 could provide the relief and protection you need.  If the bulk of your debt is unsecured debt, such as credit card debt, a Chapter 7 bankruptcy might be more appropriate for you.  Visit our Bankruptcy section to learn more.

A Chapter 13 filing will immediately stop creditor harassment and legal action.  If your creditors are suing you and you have received a summons and complaint, you must respond in a timely manner or you will suffer a default judgment that may not be removable in bankruptcy.  You should consult an experienced personal bankruptcy lawyer immediately.    

Contact us for a FREE CONSULTATION with an experienced New Jersey debt relief attorney to discuss your specific situation.

1-888-4SPH-LAW
Fax: 201 798 3324 Jersey City
Fax: 732 933-3536 Red Bank

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