Individuals file Chapter 13 bankruptcy for a variety of reasons. The following are some of the most common ones we often hear from clients:
1. They are behind on their mortgage or car payments and need bankruptcy to catch up or to force the creditor into a repayment plan.
2. They make more than the median income and do not pass the "means test"
3. They cannot afford paying their debts and need a debt consolidation plan to pay their debts.
4. They can pay all of their debts each month, but would like to make one payment every month rather than several and a Chapter 13 repayment plan would help them stay organized and achieve their goal of become debt-free.
5. There is a second mortgage or home equity line of credit (HELOC) which is "wholly unsecured" (i.e. your property is worth less than what is owed on the first mortgage) and would like to make use of the Chapter 13 "lien-stripping"
6. They have tax debt that they would like to pay off over time through the use of a Chapter 13 repayment plan.
If you are experiencing any of the above reasons, at Miller & Miller Law we can help you become debt- free. Call us today at 414-326-9231.