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.

Chapter 13 Bankruptcy Stops Harassment and Controls Debt

The filing of a Chapter 13 Bankruptcy petition can return financial control to you and your Family’s future. For most individuals the choice of filing a Chapter 7 or 13 Bankruptcy is mandated by your household income and the statutory calculations that must be administered. Chapter 7 Debtors are traditionally those individuals who have little to no incomes to even meet their basic needs. Whereas, a Chapter 13 Debtor is satisfying all of his/her household and living obligations, but does not have enough excess income to pay anything but interest on their ever-growing debt. A Chapter 13 allows you to freeze your current balances and pay your unsecured creditors a pro-rata portion of what is determined to be available after satisfying all of your basic and necessary expenditures. Then after a relatively short time, you will be starting all over again: free of all unsecured debt that once left you immobile. This method is far more palatable then sacrificing your and your family’s needs and really not making any headway.
A Chapter 13 Bankruptcy involves establishing a financial Plan between 36 and 60 months in which you pay a reasonable sum (determined by our own situation) to the Trustee’s office, and in the end whatever dischargeable debt was not paid in full, is discharged forever. There will in fact be a light at the end of the tunnel.
If that seems too good to be true, it is. For most people filing for Chapter 13 relief, there will be a feeling of extreme relief. No more cutting corners, staying up nights, living on the edge or fear of wage assignments, bank levies, Court battles or endless harassment from your creditors…no longer will you be told by creditors what you can afford.
The two most common profiles of Chapter 13 Debtors are as follows. First, there are those who are meeting their financial obligations by paying minimums only, stealing from Peter to pay Paul or living like misers. Then there are those individuals who have finally recovered from a long period of unemployment, illness, or reduced wages. These people now have monies that enable them to stay current, but not enough to pay back the arrearages of past due payments that developed in the manner that the Creditors will demand.
Nobody wants to lose their home or have their pay reduced with wage assignments. And you do not need to. Chapter 13 Bankruptcy with the help of Attorney Jack Pitts with his almost thirty years of experience is your answer
At Pitts & Burns, we will spend the time to look at your income going forward and the expenses you must meet to determine what monies you really have available to distribute to creditors. Thereafter, we will create a plan that utilizes what you do have available to satisfy your creditors under the Bankruptcy laws. Mortgage and real estate tax arrearages will be paid in full and first. Then with the remaining monies, you will pay as much off as you can in your allotted period. Some people will pay off their creditors in full and others maybe 5%. The Court and pertinent Federal Laws just demand that you pay what is determined to be available after satisfying your reasonable living expenses and nothing more.
Don’t lose your home to foreclosure or deal any longer with Creditor harassment. At Pitts & Burns, we can help.