Nationwide Chapter 13 Bankruptcy Attorneys


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The Law Offices of Kenneth H Dramer PC is a diversified debt relief law firm, with years of experience in the practice areas of debt settlement, debt collection lawsuit defense, foreclosure defense and avoidance, predatory lending violations, Federal Debt Collection violations, and Bankruptcy. No matter your financial hardship, our Debt Lawyers are skilled and able to help you determine which of our debt relief option will be best for your needs.

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Debt Relief Attorneys

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Debt Relief Attorneys

Learn about your options.

See what you can save.

Contact Us Today.

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Why You Should File for Bankruptcy

If you are sick and tired of being stressed out by your past-due bills and the harassing phone calls that come along with it, maybe you should look into a fresh start and see if Bankruptcy is the right debt relief option for you. By eliminating your debts and ridding yourself of the stress associated with being burdened financially, you will be able to gain peace of mind just like our Debt Lawyers have been able to do for so many others just like you!  The Bankruptcy court can grant you complete or partial relief from your debts and give you a fresh start. Chapter 13 Bankruptcy can allow you to keep your assets and still eliminate your debts over a period of time!

Filing Chapter 13 Bankruptcy

Chapter 13 Bankruptcy doesn’t eliminate your debts right away like a Chapter 7 would, but instead establishes a payment plan for you to repay your creditors or collectors over a period of either 36 or 60 months.  Over that time, you will end up paying back either a percentage of your debts or your debts in their entirety.  Typically, secured debts are paid back first, then as much of your unsecured debts are paid back as possible.

In a Chapter 13 Bankruptcy filing, we would propose a plan to pay back your creditors and collectors.  This payback plan is over a period of three years if your income is below the median income for your state, and a five year period if your income is above your state median. The written plan must detail all of the repayments (and their duration) that will occur. The proposed payments must begin thirty to forty-five days after the case has started.

Once we file your Chapter 13 bankruptcy petition with the court, your creditors can’t collect what they are owed from you unless they go through the courts.   As long as your assets aren’t worth more than what your creditors are owed, you will be able to keep your assets.

Your Mortgage Loan, Foreclosure, and Chapter 13 Bankruptcy

Our foreclosure defense attorneys can help you avoid foreclosure.  If our numerous foreclosure defense options are not what you need, we can help cure your past-due balance, and even contest your foreclosure action by filing a Chapter 13 bankruptcy.  By filing for Chapter 13 bankruptcy, most creditors have to submit a proof of claim to get paid, and this includes your mortgage lender.  You have the right to oppose your creditors’ claims, including your mortgage holder’s, if, they are incapable of providing or obtaining the assignment documents which are necessary to prove their right to collect on the mortgage obligation.  Read more about false mortgage assignments and promissory note endorsements on our Predatory Lending Violations Page.

Even without challenging the validity of your mortgage, if you have fallen delinquent with your mortgage loan payments Chapter 13 bankruptcy allows a way for you to catch back up on your payments in a way a Chapter 7 bankruptcy cannot.  Part of Chapter 13 involves a 3 to 5-year payment plan in which you can pay your creditors as well as your past due mortgage loan payments in addition to your regular mortgage payments.  The payment plans involving past-due mortgage amounts require a fair amount of discretionary income to afford, which many candidates cannot.  Chapter 13 bankruptcy will still enact the automatic stay so even if you don’t think you can make the required Chapter 13 payments, filing may still help stall foreclosure in order to explore other options to help save your home

The Chapter 13 is a Last Resort

 

We usually do not suggest a Chapter 13 Bankruptcy unless a significant portion of the debt owed is secured debt or the estimated payback is lower than it would be to settle your debts, as alternatives to filing Chapter 13 have proven to be more beneficial.  Through a Chapter 13 Bankruptcy, your creditors will usually end up with less money than they are owed unless your discretionary monthly income is substantial, in which case you may pay back a high percentage of your debts or even the full amount – on top of our attorney fees, filing fees, Trustee fees.

There would be no point in filing for bankruptcy and incur the harmful damage to your credit if you are going to pay back a significant portion of what you owe.  In the instances where your discretionary income is high enough that you would warrant either a high payback or full payback of what you owe, we would most likely NOT recommend a Chapter 13 Bankruptcy but instead would suggest an alternative such as Debt Settlement if the creditors are mainly unsecured, or if secured, one of our other Mortgage Relief Options.  You’ll want to explore every possible option first and leave Bankruptcy as a last resort.

 

Equity Restrictions for Filing Chapter 13

 

The most important asset most of our clients are worried about potentially losing would be their home. Each state sets the limits of home equity levels that are exempt.  This means unless your state allows for $0 exemption, some or all of your home’s equity may be protected.

Chapter 13 differs from Chapter 7 in that a Chapter 7 bankruptcy Trustee can force the sale of your assets if they are above the exemption amounts whereas a Chapter 13 you add the nonexempt amount of equity to your plan payments.  For instance, in the state of New York, where our offices are headquartered, If you live in Nassau County, you are allowed to have up to $170,825 of equity in your home, and if you are married, you can double that amount to allow for $341,650 in equity.   So for example, if you were married and had a home with $375,000 in equity, that would be $33,350 more equity than allowed.  When calculating your payment plan to pay back your debt, you will have to pay back an additional $33,350 over the course of the Chapter 13 plan.  As you probably figured out, the more home equity you have, the more expensive it will be to pay back your debts through a Chapter 13.  Chapter 13 works this way for all assets, not just your home equity.  The amounts authorized for each type of asset in your state can be found here.

Stripping Secondary Home Liens

 

If you have more than one lien on your primary residence as a result of a 2nd mortgage or even a judgment creditor, you could possibly rid yourself of the obligation to pay the lien by filing a Chapter 13 bankruptcy in a procedure known as lien stripping.  To qualify for this, your property must be worth less than what you owe on your primary mortgage and you will benefit by having the junior liens wiped away upon completing your Chapter 13 case.

For example, if you own a home that appraised for $500,000 and you owe $600,000 on your first mortgage and $150,000 on your second mortgage, your home is worth less than the balance owed on the first mortgage so you could qualify to strip the second lien.  If instead, your house appraised for more than $600,000 (the amount owed on the first mortgage) you would not be eligible to have the second mortgage lien stripped.

Debt Relief Alternatives to Chapter 13 Bankruptcy

 

Chapter 13 Bankruptcy allows you to pay back a portion or all of your debts, but sometimes the negative mark on ones credit report that can remain for years to come is too much for some individuals to bear.  We usually do not suggest a Chapter 13 Bankruptcy if the debt loads are lower or the discretionary income of the individual is too high.  If there are assets that have too much equity Chapter 13 Bankruptcy can be costly.  If there have been asset transfers over the past several years there may be objections to the discharge of your debts.  Some situations sometimes call for other options like Debt Settlement Lawyer negotiated relief which may be more beneficial.

The below options each have their benefits and drawbacks as does filing Bankruptcy. Be sure to call today for your free consultation to learn the differences in each option or click on the options below to learn more.

Debt Consolidation

If you’re on time with your debt payments, have good enough credit or, assets to use as collateral, you may be able to combine all your debts into one new loan at a lower interest rate.  Through our network of lenders, we can try to help if you want to try to borrow your way out of debt.

Debt Management

Experiencing a financial hardship and haven’t fallen too far behind on your payments?  A Debt Management Plan, also known as Consumer Credit Counseling, can help by combining all your debts into one monthly payment at lower interest rates to have you out of debt in 4 to 7 years.

Debt Settlement

Experiencing a financial hardship and past due on your creditor payments? Our No Upfront Fee Debt Settlement service can reduce your outstanding balances to help get you out of debt in as quick as 1 to 60 months!  Rather than lower your interest rates, we’ll actually reduce your total debt.

How Dramer Law Handles Our Debt Relief Cases

Read More by Expanding the Below:

Free Consultation, Fact Finding, & Financial Analysis

When you call our firm, we will want to know how and when your financial hardship began as well as what the current status is, to get a better understanding of what you are experiencing.  Our staff is trained to ask the right questions to make sure that no stone in your financial picture goes unturned.  Any representative that will speak with you will have a minimum of 10 years experience

We analyze your current financial situation including your assets and liabilities as well as your current cash flow, allowing us to narrow down our services more specific to what you can afford.  This step is critical in any of our processes as we ensure that whatever service we recommend will be within your budget and therefore you’re more likely to succeed.

 

Full Disclosure, Recommendation, & Customization

There are multiple options for each problem we encounter so based on your analysis; we will then tailor fit the best option to the individual needs of your budget.  We will explain in great detail all aspects of each process including the risks & fees – not just how much money you can save.  Nothing will be hidden from you as we are a full disclosure law firm.

Our Relief Specialists are NOT Paid a Commission so there will be no sales pressure at our law firm.  There is no obligation to retain our services.  You will be given all the facts you need, and then you will be given plenty of time to think things over.  Debt relief is an important decision, and we won’t rush you!  We have worked hard over the years to earn the reputation we have by giving honest advice to those in need rather than the advice that benefits our bottom line!

Limited Power of Attorney & Authorization to Communicate
Lenders are Sent Notice of our Representation

Once retained, we immediately send a copy of our Limited Power of Attorney to your creditors, debt-collectors, or attorneys.  Sending notice of representation is the first step in curbing any creditor or collector calls you may be receiving.  We do not want you to be harassed – we’ll take over the calls for you.

The Fair Debt Collection Practices Act (FDCPA)

Once any third party servicer, debt collector, debt purchaser, collection attorney, foreclosure attorney, etc. receive our Limited Power of Attorney, they are obligated to contact us directly on your behalf.  Failure to do so is a violation of the FDCPA, and we will sue them for you.  There is no fee charged to you if we do not win your case, and if we do win, you can win up to $1,000 per violation, and the collector in violation will pay our attorney fees for you.  It’s basically free money!

We Get the Job Done!
We are Incentivized to Perform

Our mortgage negotiation services are offered a fee structure as such that you pay part of the fee when retaining our firm and part of the fee only if we’re successful.  The success fee helps ensure we are incentivized, so you’ll know we have your best interests in mind