Whether you’re dealing with the possible loss of your home or the impending repossession of your car, an experienced Chapter 13 bankruptcy attorney at Penachio Malara, LLP can help you get life back on track. If you’re the victim of job loss, wage garnishment, or creditor harassment in New York City or Westchester, Putnam, Rockland and Dutchess Counties, call our White Plains, NY law office now for a free consultation.

Also known as “wage earner” bankruptcy, Chapter 13 bankruptcy was designed to allow debtors with a regular source of income to retain assets like a home, boat or automobile while gaining extra time to pay off creditors. It’s most often used to prevent mortgage foreclosure.

Chapter 13 bankruptcy offers debtors an “automatic stay” that stops foreclosure, repossession and wage garnishment. Once a Chapter 13 bankruptcy is filed, you are protected from creditor harassment and current collection efforts. It also prevents new collection actions from being taken against you.

A Chapter 13 action reorganizes and restructures debt repayment over a 3-5 year period. Debt is consolidated into one manageable monthly payment. Payments are made to a bankruptcy trustee, appointed by the courts, who distributes money to your creditors according to a prearranged payment plan. Secured loans like mortgages get paid first, then taxes, child support and student loans. Credit card companies get paid last.

You can continue to work and repay what you owe without worrying about losing your assets. You can repay your obligations over a reasonable period of time, rebuild financial stability, and preserve your peace of mind.