A Chapter 13 Bankruptcy Case

   A Chapter 13 bankruptcy case is often used by persons in foreclosure to stop the foreclosure process, including foreclosure sales, so as to cure their mortgage arrears over a period of time.  Debt other than mortgage arrears, such as credit cards, is also cured under the Chapter 13 plan, often without interest and at a reduced rate. Under a Chapter 13 case, a monthly payment plan is developed which allows the gradual curing of all of the client's debt including mortgage arrears over time, up to five (5) years. 

          During the Chapter 13 case the client will on a monthly basis go back to making post-petition mortgage payments and, in addition, the client will make Chapter 13 plan payments to a court-appointed trustee. The combination of such payments will allow the client not to fall further behind in mortgage arrears while at the same time catching up and curing the arrears that existed before the filing of the case. A budget, a Chapter 13 plan and bankruptcy schedules, as well as significant other documentation, need to be submitted to the Chapter 13 trustee and Bankruptcy Court as part of the process necessary to confirm the Chapter 13 plan. 

          The Law Office of Ronald D. Weiss, P.C. concentrates in helping homeowners in Chapter 13 cases and a great deal of our practice is dedicated to Chapter 13 representation.  (More information about our bankruptcy practice is available at another of our websites, www.longislandbankruptcy.com)