Chapter 13 Actions

A chapter 13 bankruptcy is also known as a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.
It is possible to take actions that reduce the debt to a manageable level, which may be done by stripping off a second mortgage or discharging a home equity line of credit.

Actions in a Chapter 13 Filing
There are several things that might happen in a Chapter 13 action. If there is a home equity line of credit (HELOC), there may be payments made to the HELOC creditor during the three to five years of the plan. At the conclusion of the plan period, any remaining debt under the HELOC may be discharged. A second mortgage may be subject to discharge if the value of the house has decreased to the level where there no longer is security for the debt. A home that is underwater (where the outstanding balances on the primary and any secondary mortgages is greater than the market value of the home) may allow the debtor to have the second mortgage discharged as part of the bankruptcy case. However, he or she still will be obligated to make payments on the primary mortgage.

Charlton & Glover Provides Guidance to Those Considering Bankruptcy

When those who own a home are thinking about filing for bankruptcy, many things  should be analyzed. If you live in the Roswell or Alpharetta area, the experienced Charlton & Glover attorneys are ready to sit down with you and help you make the decision that works best for your circumstances. Call us at (770) 993-1005 to schedule an initial consultation.


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Until your case is resolved, we are going to be working hard for you.