What is Chapter 13 bankruptcy and how does it work in New York?

Chapter 13 bankruptcy is a court-approved repayment plan that allows individuals to reorganize and pay off debts over 3 to 5 years. It’s ideal for people with steady income who want to keep their home or car while catching up on missed payments. If you live in White Plains, Bedford Hills, or anywhere in Westchester County, Chapter 13 can help you stop foreclosure and reduce or eliminate unsecured debts.

Who qualifies for Chapter 13 bankruptcy in New York?

To qualify, you must have regular income and your secured and unsecured debts must fall within certain limits. Chapter 13 is a good fit for individuals who have fallen behind on mortgage or car payments but want to protect their assets. A local bankruptcy attorney can evaluate your eligibility based on your financial situation and updated debt limits.

Will Chapter 13 stop foreclosure on my home?

Yes. Filing for Chapter 13 immediately stops foreclosure through an automatic stay. You can use the repayment plan to catch up on mortgage arrears over time while keeping your home. This is a powerful tool for homeowners in Westchester County who want to save their property in areas like White Plains and Bedford Hills.

What types of debt can be included in a Chapter 13 plan?

Your Chapter 13 plan can include mortgage arrears, car loans, credit cards, medical bills, personal loans, and some tax debt. In certain cases, you may be able to reduce or eliminate unsecured debts entirely. Our office can help you create a plan that fits your budget and complies with New York bankruptcy laws.

How long does Chapter 13 bankruptcy last?

Chapter 13 repayment plans typically last three to five years, depending on your income and debt level. After completing the plan, any remaining qualifying unsecured debt is usually discharged. Throughout the plan, you’ll make one affordable monthly payment to a bankruptcy trustee.

Can I keep my car and home if I file Chapter 13 in New York?

Yes. One of the key benefits of Chapter 13 is that it helps you keep your home and car while catching up on missed payments. It can even help you lower your car loan balance or reduce interest rates in some cases.

What happens if I miss a Chapter 13 payment?

Missing a payment could put your case at risk of dismissal, but the court often allows you to request a modification or temporarily suspend payments if you act quickly. Our firm can help you respond to changes in your financial situation and keep your case on track.

How can The Law Office of Charles A. Higgs help with my Chapter 13 case?

With offices in White Plains and Bedford Hills, we guide clients across Westchester County through every step of the Chapter 13 process. From stopping foreclosure to negotiating affordable repayment terms, we offer personalized support to help you protect your assets and regain control of your finances.