Chapter 13 Bankruptcy: A Debt Reorganization Plan for Consumers

Most people want to do the honorable thing and pay back their debt in a timely manner. However, if you are locked into payments you can't afford, your debt is just going to get worse. At the New Jersey law offices of William H. Oliver, Jr. & Associates, we help individuals and families get the relief they deserve through Chapter 13 bankruptcy and debt consolidation. We can help you get back on your feet today.

When they find out that they will not be approved for Chapter 7 bankruptcy, many people become discouraged. However, Chapter 13 bankruptcy may offer a better plan to erase your debt and restore your credit. Just like Chapter 7 bankruptcy, Chapter 13 bankruptcy will provide immediate relief by stopping foreclosure and putting an end to creditor harassment. Only an experienced bankruptcy attorney can advise you which form of bankruptcy protection is best for you.

We recommend Chapter 13 bankruptcy debt relief for the following situations:

  1. Stop foreclosures and pay back mortgage arrears over three to five years.

  2. Combine a request for mortgage modification with the Chapter 13 bankruptcy plan.
  3. Propose a sale plan of your house over time, leaving you at least your homestead exemption of $20,200 per owner in your equity. ($40,400 for husband and wife)
  4. Require the New Jersey Motor Vehicle Commission and municipal courts to restore your driver's license.
  5. Strip 2nd mortgages when the value of your house has decreased to below what you owe on your first mortgage.

  6. Discharge part of your mortgage debt on investment and commercial properties and multifamily houses.
  7. Discharge municipal motor vehicle fines and surcharges.
  8. Pay back IRS and New Jersey state income taxes (under 3 years old) and trust fund taxes without penalty of interest. Discharge older IRS and New Jersey state income tax (subject to rule).
  9. Pay back alimony and child support.
  10. Discharge civil and municipal penalties.
  11. Stop eviction and pay landlord arrears over time.
  12. Receive back repossessed cars and deal with the arrears in your plan or cram the debt down to the value of your car.
  13. Only pay back the real value of your car with a low interest rate where the car loan is more than 2 1/2 years old. The balance is discharged.
  14. Use a Chapter 13 bankruptcy where new debt accumulated after a prior Chapter 7 bankruptcy or after a discharged or dismissed Chapter 13 bankruptcy.
  15. Stop New Jersey state unemployment from denying your claim so you can get the help you need between jobs. Reinstate unemployment payments.
  16. Discharge court-ordered divorce, unrealistic equitable distribution and debt hold harmless awards, which are not support orders.
  17. Discharge IRS and state tax debt over 3 years old (other than trust funds).
  18. Where you have a temporary reduction in income propose a tier plan payment which will increase when your income increases and allow you to repay your secured debt (house or car) over the five-year plan.
  19. Allow small-business owners to continue in business and restructure their debt.
  20. Require the gas, electric, water and cable companies restore your utilities immediately upon filing.

Chapter 13 bankruptcy is more than a debt repayment plan. It can wipe out unsecured debt while you pay back your secure debts at a rate you can afford. After you fulfill the three- to five-year commitment of your plan, any remaining debt will be discharged.

If you have a second home or other significant asset that wouldn't be protected by the Chapter 7 bankruptcy, Chapter 13 bankruptcy gives you an opportunity to keep that asset while still obtaining debt relief.

Working with you throughout the process, our firm will fashion, propose, and prosecute a plan that is specifically designed to meet your immediate and long-term needs. Taking a look at your debt and earning capacity, we will make sure you find a plan that works and see you through the whole process until you safely arrive on the other side.

While Chapter 13 bankruptcy can be used to preserve sole proprietorships that are in business, our firm also provides Chapter 11 bankruptcy for New Jersey businesses.

Learn more: Filing Chapter 13 bankruptcy

Talk to An Experienced Chapter 13 Bankruptcy Lawyer Today

With many different types of debt, it is important to understand how they will be affected by your payment plan. We are happy to answer your questions and help you build a plan today. Open during weekly business hours, our Neptune City and Toms River offices offer evening and Saturday appointments as well. Contact us today for more information.