Bronx & Westchester, NY Chapter 13 Bankruptcy Attorney
A Structured Path Toward Regaining Financial Control
Falling behind on mortgage payments, vehicle loans, taxes, or other financial obligations can quickly become overwhelming. You may have a steady income and want to pay what you owe, but need additional time and a manageable structure to get back on track. For qualifying individuals, Chapter 13 bankruptcy can provide a way to reorganize debt while working toward greater financial stability.
At Thomas M. Denaro, Esq., we help clients determine whether Chapter 13 may be appropriate for their financial circumstances. Attorney Thomas M. Denaro brings decades of legal experience to every matter and provides hands-on guidance throughout the bankruptcy process. We take the time to understand what led to your financial difficulties, what assets you are trying to protect, and what you hope to accomplish through bankruptcy.
Unlike Chapter 7, which generally focuses on discharging qualifying debts without a repayment plan, Chapter 13 allows eligible individuals with regular income to propose a court-approved plan for addressing debts over time. A repayment plan generally lasts three to five years, depending on the circumstances. At the completion of a successful plan, certain remaining eligible debts may be discharged.
We assist clients in Bronx and Westchester County, NY, while also serving Nassau, Queens, Kings, Richmond, Suffolk, Rockland, Orange, Putnam, and Dutchess Counties. If financial obligations have become difficult to manage, our attorney can help you understand whether restructuring your debt through Chapter 13 may provide a practical path forward.
Call Thomas M. Denaro, Esq. at 718-863-6000 to schedule a consultation with a lawyer today.
How Chapter 13 Bankruptcy Can Help Address Debt
Chapter 13 is governed by the United States Bankruptcy Code and is sometimes referred to as a reorganization bankruptcy. Instead of immediately eliminating qualifying debts, a filer proposes a repayment plan that accounts for income, expenses, property, and different categories of debt.
Chapter 13 can be particularly important for homeowners who have fallen behind on their mortgage. Depending on the circumstances, a repayment plan may allow a filer to address past-due mortgage payments over time while continuing to make required ongoing payments. This can make Chapter 13 an option worth considering for some individuals attempting to prevent the loss of their home through foreclosure.
The filing of a Chapter 13 petition generally triggers the automatic stay. This protection under federal bankruptcy law requires most creditors to temporarily stop certain collection activities. Depending on the circumstances, the automatic stay may halt collection calls, lawsuits, wage garnishments, repossession efforts, and certain foreclosure proceedings. There are exceptions and limitations, and creditors can sometimes ask the bankruptcy court for permission to continue collection activity.
Not every debt receives the same treatment within a Chapter 13 plan. Certain obligations may need to be paid in full, while others may receive different treatment under the Bankruptcy Code. Secured debts, priority debts, and unsecured debts are generally addressed according to different legal requirements.
Chapter 13 may also be useful for people who do not qualify for
Chapter 7, have assets they wish to protect, or need time to address certain obligations that would not simply disappear through a
Chapter 7 discharge. Eligibility requirements and debt limits apply, making a careful review of your financial circumstances important before deciding how to proceed.
Building a Chapter 13 Plan Around Your Financial Circumstances
A successful Chapter 13 case requires more than choosing to reorganize your debts. The proposed repayment plan must comply with federal bankruptcy requirements and generally must be approved, or confirmed, by the bankruptcy court. The plan must account for factors such as your disposable income, secured obligations, priority debts, property, and the interests of creditors.
When you work with our firm, you work directly with an attorney. We begin by reviewing your income, household expenses, debts, property, mortgage or vehicle payments, collection activity, and financial goals. Attorney Denaro can then explain how those factors may affect your eligibility and proposed repayment plan.
Once a case is filed, a Chapter 13 trustee is appointed to administer the matter. Filers generally attend a meeting of creditors, also known as a 341 meeting, and make payments to the trustee according to the requirements of the plan. The trustee then distributes funds to creditors as provided under the confirmed plan. Required credit counseling and financial management courses are also part of the bankruptcy process.
Remaining current with required payments is critical. A Chapter 13 case can last several years, and changes such as a loss of income, unexpected expenses, or other financial difficulties may create challenges during the plan. If circumstances change, we can review what options may be available under bankruptcy law.
We understand that deciding to file for bankruptcy can bring questions about your home, credit, property, and financial future. Our approach is centered on providing clear information rather than treating Chapter 13 as a one-size-fits-all solution. We want you to understand both the potential benefits and responsibilities before making a decision.
At Thomas M. Denaro, Esq., we are committed to helping clients navigate financial challenges with personal attention and straightforward legal guidance. If you have reliable income but need a structured way to address debt, catch up on certain obligations, or respond to mounting creditor pressure, Chapter 13 may provide an opportunity to reorganize your finances and work toward a more stable future.
frequently asked questions
What is Chapter 13 bankruptcy?
Chapter 13 is a form of bankruptcy that allows qualifying individuals with regular income to reorganize their debts through a court-approved repayment plan. Plans generally last three to five years, after which certain remaining eligible debts may be discharged.
Can Chapter 13 help me stop foreclosure?
Filing Chapter 13 generally triggers the automatic stay, which may temporarily halt certain foreclosure proceedings. Chapter 13 may also allow qualifying homeowners to address past-due mortgage payments through their repayment plan while maintaining required ongoing payments.
How long does a Chapter 13 repayment plan last?
Chapter 13 plans generally last between three and five years. The length and terms of a plan depend on factors such as income, expenses, debts, and applicable bankruptcy requirements.
How much will I have to pay each month?
There is no single payment amount that applies to everyone. A Chapter 13 payment is based on several factors, which may include disposable income, household expenses, secured debts, priority obligations, property, and the requirements of the Bankruptcy Code.
Can Chapter 13 stop wage garnishment and collection calls?
The automatic stay generally requires most creditors to stop certain collection activities after a bankruptcy case is filed. Depending on the circumstances, this may include collection calls, lawsuits, wage garnishments, and repossession efforts. Exceptions can apply.
Can I keep my home and car in Chapter 13?
Chapter 13 may allow qualifying individuals to retain certain property while repaying debts according to an approved plan. However, ongoing payments and other requirements may still need to be satisfied. An attorney can review how your specific property and debts could be treated.
What happens to credit card and other unsecured debt?
Unsecured debts such as credit card balances and medical bills may be included in a Chapter 13 plan. How much must be repaid depends on the circumstances and applicable bankruptcy rules. Certain remaining eligible balances may be discharged after successful completion of the plan.
What happens after I complete my Chapter 13 plan?
After all required plan payments and other bankruptcy requirements have been completed, qualifying remaining debts may be discharged. The discharge generally releases you from personal liability for eligible debts covered by it, allowing you to move forward after completing the repayment process.
Disclaimer: We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the bankruptcy code.
Have Questions About Bankruptcy?
If overwhelming debt, creditor pressure, or the threat of foreclosure has left you unsure of what to do next, we can help you understand your options. Call Thomas M. Denaro, Esq. at 718-863-6000 today to speak directly with an attorney about bankruptcy and potential debt relief solutions. 24/7 Phone Availability | Hablamos Español