Nassau County Bankruptcy Attorney Compares Chapter 13 Plans: Loss Mitigation Plan Compared to Traditional Catch-Up Plan and Compared to a Voluntary Sale Plan
Understanding Chapter 13 Bankruptcy Plans If you’re struggling to keep up with mortgage payments and worried about losing your home, Chapter 13 bankruptcy can be a lifeline. It allows you to restructure your debts, catch up on missed payments, and keep your assets, particularly your home. However, deciding on the right repayment plan under Chapter 13 is crucial, and that’s where understanding the differences between a Loss Mitigation Plan (LMP), a Traditional Catch-Up Plan, and a Voluntary Sale Plan becomes essential. Overview of Chapter 13 Payment Plans Chapter 13 is often referred to as the “wage earner’s plan” because it’s designed for individuals with a reliable income who want to keep their property by catching up on their debts over time. Debtors create a payment plan, usually lasting three to five years, to repay creditors. Who Qualifies for Chapter 13? To qualify, your debts must fall within certain limits, and you need a steady source...