Filing for Chapter 13 bankruptcy can be a powerful tool for individuals struggling with debt but wanting to keep their assets. Unlike Chapter 7, which involves liquidating non-exempt property, Chapter 13 allows filers to reorganize their debts into a manageable repayment plan. At Carroll Law Firm, P.C., we help New Jersey residents navigate the Chapter 13 process and take full advantage of its benefits.

One of the biggest benefits of Chapter 13 bankruptcy is the automatic stay, which immediately halts foreclosure, repossession, wage garnishments, and creditor harassment. This protection gives filers time to catch up on past-due payments and work out a repayment strategy.



Chapter 13 allows debtors to consolidate their debts into a single, affordable monthly payment, typically over a period of three to five years. This makes it easier to stay current on financial obligations while maintaining essential living expenses. Additionally, at the end of the repayment period, certain remaining unsecured debts, such as credit card balances and medical bills, may be discharged.

For homeowners, Chapter 13 offers a significant advantage by stopping foreclosure and allowing past-due mortgage payments to be repaid over time. This gives homeowners a second chance to catch up while keeping their property.

If you have a car loan, Chapter 13 may allow for loan restructuring, reducing the total balance owed and lowering interest rates, making payments more manageable. Additionally, co-signers on certain debts may also be protected from collection efforts.

Filing for Chapter 13 also helps protect valuable assets that might otherwise be liquidated under Chapter 7, making it a great option for individuals with significant home equity or other assets they wish to retain.

For New Jersey residents struggling with debt, Chapter 13 bankruptcy provides a structured and effective way to regain financial stability. At Carroll Law Firm, P.C., we provide personalized legal guidance to help clients achieve lasting debt relief and a fresh start.