The start of a new year often brings a desire for a fresh beginning—a clean slate. If overwhelming debt is weighing you down, this feeling can be particularly strong. For many New Yorkers struggling to manage their finances, Chapter 13 bankruptcy offers a powerful pathway to a financial reset.
At Shiryak & Habib LLP, we understand that considering bankruptcy is a deeply personal and often difficult decision. Our approach is focused on helping our community members reclaim their financial stability.
Understanding Chapter 13: The Reorganization Path
Chapter 13 bankruptcy is known to many as the "wage earner's plan." Unlike Chapter 7, which involves liquidating non-exempt assets, Chapter 13 allows you to keep your property while proposing a repayment plan to your creditors over a period of three to five years.
This type of bankruptcy is especially beneficial for New York residents who:
- Have a steady income but have fallen behind on mortgage or car payments.
- Have non-exempt assets they want to protect (like a second car or valuable investment).
- Don't qualify for Chapter 7 due to their income level.
Keep Your Home, Reclaim Your Future
One of the biggest advantages that Chapter 13 offers homeowners is the ability to prevent foreclosure. This way, people can catch up on missed mortgage payments over the life of the plan. The automatic stay goes into effect immediately upon filing, halting collection efforts, lawsuits, wage garnishments, and—crucially—foreclosure proceedings. This relief provides immediate breathing room and a structured path to save your home.
A Structured Plan for Debt Management
The core of a Chapter 13 filing is the repayment plan. With the guidance of a skilled bankruptcy attorney, you consolidate eligible debts into one manageable monthly payment. This plan must be approved by the bankruptcy court and is based on your disposable income.
Key benefits of the Chapter 13 plan:
- Principal Reduction: In some cases, you may be able to reduce the principal balance on certain secured debts (like car loans).
- Protection for Co-Signers: Chapter 13 can offer relief to co-signers on consumer debts.
- Debt Discharge: Once you successfully complete the repayment plan, any remaining unsecured debt (like credit card balances and medical bills) that is included in the plan will be legally discharged, or eliminated.
Financial Freedom in the New Year
Filing for Chapter 13 is not an admission of failure; it is a strategic and responsible decision to take control of your financial future. It offers a legal framework to reorganize your obligations, stop aggressive creditor actions, and emerge in a few years with a significantly reduced or eliminated debt burden. It’s truly a new start.
Take the Next Step with Our Chapter 13 Bankruptcy Attorney in Queens
If you're a New York resident ready to turn the page on debt and embrace a financial reset in the New Year, the time to act is now. The complexities of bankruptcy law require experienced guidance. This is where Shiryak & Habib LLP comes in. We are committed to providing you with the compassionate, expert representation you need.
To discuss your unique financial situation and learn how Chapter 13 can work for you, call us at (908) 460-1337 to schedule a confidential consultation.