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Chapter 13

DelCotto Law Group has earned a reputation for leading financially struggling individuals through the legalities included in facing possible bankruptcy. Chapter 13 is a section of the Bankruptcy Code which helps qualified individuals who desire to repay their creditors but are experiencing financial difficulty. There are many advantages to filing a Chapter 13, including catching up your mortgage and repaying tax obligations.

Chapter 13 bankruptcy differs from the outright liquidation of an individual's assets and the expensive and complicated restructuring of debts (seen in Chapter 11 bankruptcy). Essentially, Chapter 13 allows a debt-laden person who still has significant income to submit an orderly plan to the court 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.

Assuming a bankruptcy filing is needed, the only way to determine which chapter best fits a client’s needs 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.