The Benefits of Chapter 13 Bankruptcy

Accomplished Denver attorney Michael Guyerson joined the commercial bankruptcy and civil litigation law firm of Buechler and Garber, LLC, in 2016 as general counsel. Over the course of his 30-year career, Michael Guyerson has become well-versed in matters of commercial and individual bankruptcy, including both Chapter 11 and Chapter 13 filings.

Also known as a wage earner’s plan, Chapter 13 bankruptcy filings provide gainfully employed individuals with debt adjustment support and, over time, a debt free life. In most cases, debtors propose a repayment plan for all or part of the original debt to be paid back over a span of three to five years. There are a number of benefits of declaring Chapter 13 bankruptcy compared to the liquidation approach of Chapter 7.

Preventing a home from going into foreclosure is arguably the most notable advantage of Chapter 13. In fact, individuals may even be able to use Chapter 13 as a method of rehabilitating delinquent mortgage payments, though they are still expected to make all live mortgage payments during the repayment period. Furthermore, with the exception of a mortgage on a primary residence, Chapter 13 filings can extend secured debts over the duration of the repayment plan, which may lower individual payments.

Additional benefits of Chapter 13 bankruptcy include protection of co-signers on consumer debts and a streamlined repayment process to a single trustee. For more information about Chapter 13, contact a knowledgeable bankruptcy attorney.