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At Craft Law, we know how complicated it can be to file bankruptcy. We strive to make filing bankruptcy as easy and stress-free as possible. We have offices located in Greenville, Morehead City, and Rocky Mount, North Carolina. We are here to help with all your bankruptcy needs. We also specialize in traffic law and underage drinking citations.

One of the most difficult things about filing for bankruptcy is understanding the different chapters you can file. Chapter 13 of the Bankruptcy Code is another common chapter that debtors file. This chapter provides for an adjustment of debts of an individual with regular income. Chapter 13 also lets debtors keep property and pay debts over time. Typically, these debts are paid over three to five years.

A chapter 13 bankruptcy is also called a wage earner’s plan. This is because individuals making a regular income are allowed to develop a plan to repay their debts. In this case, debtors come up with a repayment plan, in which they make payments to creditors over three to five years.

Filing a chapter 13 bankruptcy has many advantages. While a chapter 7 offers liquidation of assets, chapter 13 offers debtors the chance to save their homes from foreclosure. Individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time, but they must still make all mortgage payments that come during the chapter 13 plan. These payments must also be paid on time.

Another advantage of chapter 13 is that is allows debtors to reschedule secured debts and extend them over the time period that the chapter 13 plan covers. This may lower payments. Chapter 13 also acts like a consolidation loan. The debtor makes the plan payments to a trustee who then distributes payments to creditors. Therefore, debtors will have no direct contact with creditors while under the protection of a chapter 13 case.

Filing for bankruptcy might be the best decision for you. We know that it can be complicated to pick the best chapter of the Bankruptcy Code to file. At Craft Law, we aim to make this process as easy on you as we can. Serving Greenville, Rocky Mount, and Morehead City, North Carolina, we are proud to take care of your bankruptcy needs. Give us a call today!