What Is a 100% Chapter 13 Repayment Plan in NY?
A 100% Chapter 13 repayment plan is a bankruptcy proceeding in which the petitioner and their attorney work with creditors to establish a process for paying all secured and unsecured debt over three to five years. A 100% plan is for people whose income and ability to meet their financial obligations make them ineligible for debt reduction.
A 100% Chapter 13 repayment plan may actually save the petitioner money because it is up to creditors to file a Proof of Claim with the court to get paid. Some creditors never bother to submit a claim. Because the petitioner pays all claimed debt, the bankruptcy declaration does less damage to the individual’s credit than other bankruptcy filings would.
White Plains Chapter 13 bankruptcy attorney Michael H. Schwartz, P.C., has helped thousands of individuals and businesses obtain debt relief, retain their property, and protect their loved ones. To learn how we can help you propose a plan to restructure your debt and repay your creditors, call us now or fill out our online form.
What Are The Benefits of Using a 100% Chapter 13 Repayment Plan in New York?
Chapter 13 bankruptcy (also known as the wage earner’s plan) allows the petitioner to propose a plan to restructure their debt and repay creditors.
Many people who file for Chapter 13 bankruptcy and develop a repayment plan benefit from the protections afforded by the bankruptcy code. A Chapter 13 filing halts home foreclosure, garnishment of wages, and phone calls from creditors. An individual can resolve their debts and save thousands of dollars in avoided interest and late fees. A 100% Chapter 13 plan stops interest or late charges from accruing on unsecured debt, such as credit card bills, medical bills, and personal loans.
Other benefits for those who file 100% repayment plans include the ability to:
- Reduce the interest rate on a car or truck loan
- Convert a second mortgage or home equity loan to unsecured debt and pay it at 0% interest
- Protect nonexempt property, such as a second home, rental property, or extra land
- Protect other assets, such as a personal injury claim settlement
- Make consistent and timely payments to creditors, which will help raise your FICO credit score.
Contact an Experienced New York Bankruptcy Attorney For Help
Determining whether you can file for bankruptcy under Chapter 13 depends on your financial goals as well as your income eligibility. Chapter 13 cases are often complex and require negotiating with creditors who are promised scheduled payments from someone who has been in arrears.
In a consultation, White Plains Chapter 13 bankruptcy attorney Michael H. Schwartz, P.C., can analyze your financial information and give you an honest assessment of the appropriate steps for you to take. Attorney Michael H. Schwartz has been helping people get their financial lives back on track throughout the Westchester, Rockland, Putnam County, Hudson Valley, and New York City area for more than 40 years.
We are ready to meet with you to discuss your case. Call us at (800) ON MY SIDE or fill out our online contact form today.
Michael H. Schwartz is the largest filer of bankruptcy cases for people living in Westchester and Rockland counties in New York. A graduate of New York Law School, Michael has been licensed to practice in New York State courts since 1983. He is also licensed to practice in the U.S. Bankruptcy and District Courts for the Southern, Eastern and Northern Districts of New York and the District of New Jersey as well as the Second Circuit U.S. Court of Appeals. He is a graduate of Max Gardner’s Bankruptcy and Veterans’ Boot Camps. Several media outlets have reported on his cases or sought his insights, including The New York Times.
