Chapter 13 Bankruptcy

Falling behind on mortgage payments, struggling to pay off high-interest credit cards, or facing the threat of foreclosure can leave anyone feeling powerless. Many New Yorkers facing financial hardship find themselves overwhelmed by creditor calls, lawsuits, and the fear of losing their homes or vehicles. When monthly obligations pile up faster than income, it may feel like there’s no way out.

Working with a Chapter 13 bankruptcy attorney can help you regain control. This type of bankruptcy allows you to restructure your debt into manageable monthly payments over three to five years, all while protecting your property. Unlike liquidation, Chapter 13 gives you time, structure, and court protection to resolve your financial problems while continuing to meet essential obligations.

At Ursulova Law Offices, we guide clients through every stage of the Chapter 13 process. With offices in Brooklyn and Garden City, we provide legal services to individuals across New York who need to stop foreclosure, avoid repossession, or manage complex debt. Our detail-oriented approach ensures filings are accurate, deadlines are met, and clients are supported at each step.

How Chapter 13 Bankruptcy Works

Chapter 13 bankruptcy is often referred to as a “reorganization bankruptcy” and is available to individuals with a steady income. It allows you to keep your property while repaying all or part of your debts over a court-supervised plan. This differs from Chapter 7, which typically involves selling non-exempt assets to repay creditors.

Once your petition is filed, the court issues an automatic stay. This legal protection immediately halts foreclosure proceedings, wage garnishments, vehicle repossessions, and most other collection actions. While under the court’s protection, you propose a repayment plan based on your income, expenses, and type of debt. The plan is reviewed and approved by a bankruptcy trustee and the court.

A Chapter 13 bankruptcy lawyer can help you prepare a viable plan that meets the legal requirements and aligns with your financial capabilities. Payments are typically made monthly to the trustee, who then distributes the funds to your creditors according to the approved schedule. Many clients use this process to catch up on missed mortgage payments while keeping their homes.

Benefits of Chapter 13 for New York Residents

Filing for Chapter 13 offers significant benefits for individuals who require structure without compromising their critical assets. It is often the preferred option for homeowners in Brooklyn or elsewhere in New York who are behind on mortgage payments but want to avoid foreclosure.

You can also use Chapter 13 to stop repossession of a car, pay down tax debt, or consolidate unsecured debts into a single manageable payment. A Chapter 13 bankruptcy attorney will ensure your plan takes full advantage of available protections while remaining compliant with the law.

Additional benefits include:

• Retaining your home, car, and other valuable property
• Avoiding direct negotiations with aggressive creditors
• Gaining immediate protection through the automatic stay
• Consolidating debts into one predictable payment
• Discharging certain unsecured debts after plan completion

At Ursulova Law Offices, we help you explore all available strategies. In some cases, clients may be eligible to reduce the principal balance of secured debts (a process known as “cramdown”) or remove second mortgages through lien stripping. These tools require precise execution, which is why we take a focused and detailed approach to every case.

Is Chapter 13 the Right Fit?

Not every person in debt qualifies for Chapter 13, and not every person who qualifies should file under it. Eligibility depends on your total debt level and ability to maintain a steady income. The court must believe that your repayment plan is reasonable, and you must show that you can meet all required obligations.

We often assist individuals who have been denied for Chapter 7, own non-exempt property, or want to save a family home from foreclosure. With proper guidance, even those facing financial crisis can use Chapter 13 to reset and rebuild. If you’re unsure which option suits your needs, our bankruptcy services include a comprehensive review of your financial profile, allowing you to make an informed decision.

Because Chapter 13 spans several years, it’s essential to work with a Chapter 13 bankruptcy lawyer who can support you from start to finish. Our firm maintains close communication with clients, updates plans when financial situations change, and ensures full compliance with court requirements at every stage.

Legal Process and Requirements

Filing for Chapter 13 in New York begins with gathering detailed financial records, including income statements, debt documentation, asset listings, and a proposed monthly budget. From there, we draft your petition and repayment plan, file it with the bankruptcy court, and represent you at all necessary hearings.

You will be required to attend a meeting of creditors (also called a 341 meeting), where the trustee may ask fundamental questions about your plan. If the court approves your proposal, your repayment period officially begins. Throughout the plan’s term, you must stay current on trustee payments and continue paying necessary living expenses like rent, insurance, and child support.

Should you face a financial setback, we can help modify your plan or request court relief. With a structured legal strategy in place, setbacks don’t have to derail your progress. Our legal team works to ensure you maintain compliance while remaining protected from creditor action.

Frequently Asked Questions

Can I keep my house in Chapter 13?

Yes. Chapter 13 is often used to stop foreclosure and allow homeowners to catch up on missed mortgage payments over time.

Will my credit be affected after I file?

Your credit will be affected, but the impact will be temporary. Many clients begin rebuilding credit during or soon after the repayment plan. The ability to reduce debt and avoid default can improve your financial standing.

Do I need a steady job to qualify?

Yes. Chapter 13 is only available to individuals with regular income, including employment, business income, pension, or public benefits.

How long does a Chapter 13 case last?

Most repayment plans last three to five years, depending on your income and the type of debt involved.

Can I file without an attorney?

While technically allowed, Chapter 13 cases are complex. Filing without a Chapter 13 bankruptcy lawyer greatly increases the risk of plan rejection, case dismissal, or legal penalties.