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Chapter 13

DelCotto Law Group has earned a reputation for leading financially struggling individuals and sole proprietorships through the legalities included in facing possible bankruptcy. Chapter 13 is a section of the Bankruptcy Code which helps qualified individuals, or small proprietary business owners who desire to repay their creditors but are in financial difficulty.

Chapter 13 bankruptcy differs from the outright liquidation of an individual's or business' assets (seen in Chapter 7 bankruptcy) and the expensive and complicated restructuring of debts (seen in Chapter 11 bankruptcy). Essentially, Chapter 13 allows a debt-laden person or sole proprietorship that still has significant income to submit an orderly plan to the courts to pay back debts over a few years. Doing so can provide advantages to the debtor not found in other forms of bankruptcy, such as preventing foreclosure of a residence.

Chapter 13 can also restructure tax obligations in addition to protecting individuals from the collection efforts of creditors, permitting individuals to keep their real estate and personal property, and providing individuals the opportunity to repay their debts through reduced payments. In Chapter 13 debts may be discharged that would be non-dischargeable under other chapters.

When representing creditors in Chapter 13 proceedings, DelCotto Law Group tries to protect a creditor’s interests and collateral. The firm evaluates the debtor’s plan to get the highest return possible, including an evaluation of a debtor’s purported disposable income.

Assuming a bankruptcy filing is needed, the only way to determine under which chapter to file, is to analyze the available options under the other bankruptcy chapters. The lawyers of DelCotto Law Group are well versed in all areas of bankruptcy and can thoroughly analyze their clients’ options before a final decision is made.