CHAPTER 13 BANKRUPTCY

January 13, 2026 By Elliot S. Schlissel

A Chapter 13 Bankruptcy formerly known as “a wage earner’s plan” is a reorganization of the homeowner’s finances for a period up to 5 years. This reorganization of the finances is under the supervision of a Federal Trustee. A bankruptcy attorney can help a homeowner figure out which type of bankruptcy works best for the homeowner. A Chapter 13 Bankruptcy will give a homeowner up to 5 years to get their mortgage current. The filing of a Chapter 13 Bankruptcy which will bring it to fruition to get the mortgage current is a complicated series of transaction.

Bankruptcy Attorney

A bankruptcy attorney that handles foreclosures is usually the best solution to a homeowner who seeks to reorganize their finances and get their mortgage current. Your home is your most valuable asset. A homeowner should do everything in their power not to lose their home. Bankruptcy is not a dirty word. It is the utilization of a federal program to bring a mortgage current.

Credit Issues

Many homeowners believe that a bankruptcy will prevent them from ever having good credit. The opposite is true. The bankruptcy will eliminate the problem and allow the homeowner to recover their credit. Homeowners can file a Chapter 13 Bankruptcy to set up a 60 month plan to bring their mortgage current. While the bankruptcy is pending the foreclosure cannot move forward. This allows homeowners to sleep at night and not worry about losing their home.

The law firm of Schlissel DeCorpo LLP has been helping families deal with mortgage and foreclosure problems for more than 30 years. We can be reached at 718-350-2802, 516-561-6645 or 631-319-8262 or by e-mail at info@sdnylaw.com.