At Express Bankruptcy Solutions, we have helped hundreds of individuals and families in Massachusetts regain control of their financial future with a successful bankruptcy filing.

There are several situations where a Chapter 13 is preferable to a Chapter 7. A Chapter 13 bankruptcy is the only choice if you are behind on your mortgage or business payments and you want to keep your property, either in Massachusetts or another state, at the end of the bankruptcy process.  A Chapter 13 Bankruptcy is sometimes referred to as “Personal Reorganization.”  Chapter 13 Bankruptcy allows you to propose a repayment plan to your creditors, which is typically payable over three to five years.  Creditors have limited say in whether the plan is approved, however, it must be approved by the Bankruptcy Court in order to be confirmed.  Once the plan is confirmed, you may begin to make payments. To file Chapter 13 bankruptcy you must have a “regular source of income” and have some disposable income to apply towards your Chapter 13 payment plan.

Chapter 13 Bankruptcy is available to individuals and families who have valuable non-exempt assets that would otherwise be lost in a Chapter 7 Bankruptcy and for those who do not qualify for a Chapter 7 because of their income.  It also may be the perfect solution for homeowners who either have equity in their home or have fallen behind on their mortgage.

Prevent a Foreclosure – Repay Your Mortgage Arrears Over a Three to Five Year Period.

Losing a home to foreclosure can be one of the scariest prospects a homeowner can face.  However, homeowners can literally stop a foreclosure proceeding dead in its tracks and force the bank to accept the repayment schedule outlined in the Bankruptcy plan using a successful Chapter 13 repayment plan.  If a Chapter 13 plan is not workable, you still may qualify for assistance with a Home Loan Modification.  Filing Chapter 13 Bankruptcy is sometimes seen as a last resort for homeowners in foreclosure, but that is not necessarily true. In many cases, it is a powerful alternative to home loan modification and takes the leverage and control away from the mortgage bank and puts it into the hands of the homeowner. However, if a Chapter 13 plan is not workable, you still may qualify for assistance with a home loan modification.  There are also occasion when a Chapter 13 filing can also buy time to negotiate a home loan modification with the lender.

Remove or Modify Second Mortgage in a Chapter 13 Bankruptcy

If you are “upside down” on your home loan and the current fair market value of your home falls below the outstanding balance on your first mortgage, additional mortgage liens can be “stripped” or “crammed down” with a successful Chapter 13. The second (and sometimes third) mortgages on your home will be reclassified as unsecured debt.  At the completion of your Chapter 13 Bankruptcy plan, those additional mortgage liens will be removed from the property.

Chapter 13 Bankruptcy is designed for individuals and families who have steady income and are willing and able to repay part of their debts.  In many cases, debtors can still get rid of a large percentage of their unsecured debt by only paying a percentage of the total amount owed. It is not uncommon for people to pay back less than 30% of their total unsecured debt in Chapter 13 Bankruptcy.  Monthly payments are based on what you can afford and at the end of an approved repayment plan (usually sixty months), the remaining debts are wiped out altogether.

Whatever your reason for filing Chapter 13 Bankruptcy, it will likely solve your debt problems and protect you as efficiently as Chapter 7 Bankruptcy. Call us at 978-851-4000 to assess your situation and guide you toward the appropriate financial solution.  We are conveniently located in Tewksbury near Rte. 93 and Rte. 495.  We service clients throughout Massachusetts.