Chapter 13 – The Better Bankruptcy Choice

Most everyone wants to a file a Chapter 7 Bankruptcy until they learn of all the advantages of filing a Chapter 13.

Attorney Jack Pitts, who personally has over 30 years of legal experience in Bankruptcy law will assess your situation and explain in plain and ordinary terms if Chapter 13 is right for you. Attorney Pitts has been recognized by the Rhode Island Bar Association in 2016 for his dedication and excellence in helping those individuals faced with foreclosure and in need of debt relief.

A Chapter 13 offers you the opportunity to pay back a portion or all of your debt within a defined period of time; usually 3-5 years. The initial benefit of a Chapter 13 filing, is that whatever you owe on the filing day is locked in. That means no more growing interest and penalties; no more nasty letters or phone calls; no more threats of attaching your pay, home or bank accounts; or, fear of your car being towed away during the night.

A popular misconception about a Chapter 13 filing is that you are required to pay all of your debt back. That is not true. What you are required to do, is pay the Bankruptcy Trustee (who disburses your payments to the creditors) the amount of money you have available after meeting all your ordinary and usual living expenses. So no more stealing from Peter to pay Paul, no more living with the thermostat down to 55 degrees… no more unnecessary sacrificing for you and your family.

Another benefit, is that for many people, a portion of the legal and the entire Trustee fee can be paid through the Chapter 13 Plan: meaning that a portion of your monthly payment will be used to address these fees and your creditors! It is almost like you’re not having to pay the administrative fees at all.

Other benefits of a Chapter 13, if structured properly, are that you can reduce your mortgage payments, eliminate a second mortgage (if certain criteria are met), stop foreclosures and repossessions and pay back any arrearage due on YOUR terms, eliminate judgment liens on your property, eliminate debt without being assessed  income tax on the discharged portion of your debt, have money available to make timely payments on your home and car, pay back student loans and income tax liabilities (some income tax liabilities can even be eliminated) with much smaller payments than demanded by the federal government, improve your credit score, and so much more.

After a peaceful and informative meeting with Jack Pitts at Pitts & Burns in Johnston Rhode Island, with compassionate care and plentiful parking, he will tell you what opportunities are available for you.