Experienced Chapter 13 Bankruptcy Lawyers Explain the Advantages

30 Year’s Experience Serving the Tacoma and Pierce County Areas

Restore Your Driver’s License

If your driver’s license is suspended due to tickets or accidents, the filing of Chapter 13 Debt Repayment Plan can help you get your license reinstated within a few weeks of filing.

Remove Your Second Mortgage

Is your home worth less than what you owe on your first mortgage? The recent recession has caused most people to lose significant value in their homes. In a Chapter 13 plan, you may be able to remove the second mortgage as a lien on your home and have hope to again have some equity. In order to “strip” the second mortgage, the amount you owe on your first mortgage must exceed the fair market value of your home, and you must otherwise qualify to have your Chapter 13 plan confirmed.

Avoid All Creditor Contract – Stop Interest On Debts

While you are in Chapter 13, you will make one monthly payment to the Trustee and all creditors are prevented from contacting you. You may want to pay off your debts but, if you can only make minimum payments, it may take up to 25 years to pay off your balances. A chapter 13 plan usually stops all interest on unsecured claims and allows you to be debt free within five years, by making one payment monthly to the Chapter 13 trustee to consolidate all of your debts. High-interest rates on vehicle loans can also usually be reduced.

Stop Foreclosure of Your Home

The current economic situation is a result of years of reckless and predatory lending, leaving hundreds of thousands of individuals in danger of losing their homes. Even hard-working people can encounter situations which may affect their ability to pay their mortgage in a timely manner. Many issues can be contributing factors such as temporary job loss, medical illness or injury, marital difficulties, unforeseen repairs or high utility rates, tenant problems, or even a death in the family. Just one of these situations can have a direct impact on making home mortgage payments.

Foreclosure occurs when a lender retrieves a home as collateral for an unpaid mortgage loan. Foreclosure relief methods allow borrowers in danger of losing their homes to take steps to maintain the mortgage and keep the property. Foreclosure relief is a way of stopping or stalling the foreclosure process and giving a borrower the opportunity to keep his home. Some foreclosure relief options offered by lenders may only be temporary and are often difficult to accomplish. Foreclosure relief options must be sought either prior to or soon after the borrower receives notice that foreclosure proceedings have begun. Preventing foreclosure takes time. It is important to note that after a home is lost to foreclosure, it is too late to utilize foreclosure relief options.

Whether you are a homeowner who has experienced a loss of income, injury or illness, or have a mortgage you can no longer afford, or you are an investor who can no longer sell for what is owed on the mortgage, a foreclosure can have severe personal and financial repercussions. Many people lose everything in a foreclosure only to later learn that they could have saved their home if they had only pursued the rights available to them under the law.

When you file a Chapter 13 Debt Repayment Plan, all foreclosure proceedings are immediately stopped and you usually have three to five years to get caught up on your mortgage payments.

Get Caught up on Taxes

Many people who have tax debts and liens are often swamped with advertising letters from people offering to settle their tax liability for “pennies on the dollar.” Many times these advertisers make promises they cannot keep. Bankrupcty attorney David Yando is a Washington State attorney who represents people in Washington. Unlike the out of state advertisers, David Yando deals with the Washington State Tax authorities, as well as the Internal Revenue Service. Filing a Chapter 13 plan allows you to pay past due tax debts over a five year period, stopping penalties from further accumulating.

Payments as Low as $199 Per Month

How would you like to consolidate all of your credit cards, medical bills, collections and other unsecured debts in one low payment of $199 per month? Are you barely making enough to pay for your monthly living expenses and cannot afford to pay all of these unsecured bills?

If you qualify as a below median individual or couple under Chapter 13, and your monthly disposable income, after payment of usual and ordinary living expenses, is less than a couple hundred dollars per month, you could consolidate all of these bills into one monthly payment of $199 for 36 months and eliminate any remaining unsecured debt! Your payment on one credit card alone is probably more than $199 per month and most of that payment is for interest only – it will take you up to 25 years of payments to pay off your balance! How about $199 per month for three years to eliminate all of your credit card and unsecured debts? What incredible savings!!

Contact a Pierce County Bankruptcy Lawyer Today!


If you would like to learn more about using Chapter 13 to obtain debt relief, contact Washington Fresh Start to speak with an experienced bankruptcy lawyer today.