Experienced Assistance With Debt Relief Actions


When you are struggling with overwhelming debt, your situation may feel hopeless. However, there are legal options available that can help get you the debt relief you need in order to get on the path to a brighter financial future. Hartford Chapter 13 bankruptcy attorney Edward P. Jurkiewicz at Lawrence & Jurkiewicz, LLC, can review your situation and let you know what your options are.

If you need assistance getting a handle on secured and unsecured debts, we can help. Contact our Connecticut debt resolution lawyer online or call 860-956-5671 to schedule an initial consultation to discuss your situation.

Chapter 13 Explained

Chapter 13 is sometimes known as “wage-earner reorganization,” although you do not have to be a wage earner to benefit, so long as you have some income and assets to fund a repayment plan. The plan, which has a maximum duration of 60 months, must, at a minimum, pay your unsecured creditors (credit cards, personal loans) the same percentage of their debt that they would be paid if you had filed a Chapter 7 liquidation case. This amount, the “liquidation value,” can range from 0 to 100 percent. Like Chapter 7, an automatic stay of all collection activity against you, including foreclosures, takes effect upon filing. Here are some other advantages of Chapter 13.

No Income Limitations

If you make too much money to qualify for Chapter 7 under the bankruptcy means test, you can file under Chapter 13.

Cure and Maintain Mortgage Arrearages

You can stop an imminent or pending foreclosure against your home or other real estate by proposing and carrying out a plan that pays, over the term of the plan, the mortgage arrearages that existed on the filing date, and maintains current mortgage payments thereafter. Mortgage arrearages paid through the plan can be paid at 0 percent interest. This option is especially helpful if you are ending a period of unemployment or a period when your income was temporarily reduced for any reason.

Second Mortgages or Home Equity Lines of Credit May Be Avoided

If the balance of your first mortgage exceeds the present value of your principal residence, you can avoid any second mortgage or home equity line by treating it in the same manner as other unsecured creditors through your plan. Upon successful completion of the plan, the second mortgage will be removed from the land records.

Car Loans May Be Reduced

If the balance of your car loan significantly exceeds the present value of your car, you may be able to reduce the loan balance in similar fashion.

If You Have to Pay Unsecured Creditors Through the Plan, the Required Interest Rates Are Extremely Favorable

If your plan pays unsecured creditors less than the full amount they are owed, you are not required to pay them any interest. If your plan pays unsecured creditors the full amount they are owed, the interest you will pay them through the plan may vary, depending on the date the plan is confirmed, but generally, the rate is extremely low.

Completely Voluntary Process

Chapter 13 is a completely voluntary process. If your plan is not working out, you can decide to convert your case to Chapter 7, if you are otherwise eligible, or you can dismiss your case.

Upon Completion, You Receive a Discharge of Debts

Upon successful completion of your Chapter 13 plan, you will receive a discharge of your personal liability of all debts provided for by the plan. So, depending on your situation, you will have a “fresh start,” which may include reduced mortgages on your residence and no credit card debt, in three to five years.

A word about mortgage modifications and delays in foreclosures: Today, homeowners who are not current on their mortgages are besieged with requests from the bank to apply for modifications, or authorize a “short sale” of the property, in which they will lose their home. While these alternatives should not be dismissed out of hand, many homeowners lose sight of the opportunities presented by Chapter 13. Many banks are also delaying foreclosure, either to get their paperwork in order, or to delay increasing their real estate inventory. While the bank is delaying, your mortgage arrearage may be skyrocketing, so do not be lulled into a false sense of security.

Contact Lawyer Edward P. Jurkiewicz Today

If you would like to learn more about our firm, please contact our office. We offer a free initial consultation to discuss your situation. With offices in Hartford, Avon and Torrington, we represent clients throughout Connecticut, including the Greater Hartford metropolitan area, and the Farmington Valley and Litchfield County areas.

Hartford area bankruptcy attorney and divorce lawyer Edward P. Jurkiewicz has over 20 years of experience representing clients. Our firm represents debtors and creditors and handles both relatively simple divorces and bankruptcies and more complex litigation matters. With this depth of experience, our firm is able to anticipate and prepare for any potential issues that could arise in your bankruptcy, divorce or family matter.

CONTACT US TODAY AT 860-299-6263