Law Office of Chad M Sherwood, LLC

Contact our firm for a FREE consultation 866-261-2421 | 609-241-9377

Contact our firm for a FREE consultation
866-261-2421 | 609-241-9377

Contact our firm for a FREE consultation 866-261-2421 | 609-241-9377

Contact our firm for a FREE consultation
866-261-2421 | 609-241-9377

Avoiding Foreclosure Through Chapter 13

People have a natural tendency to want to repay their debts. There are situations, however, in which this urge can be harmful. If you are more than six months behind on your mortgage, are unable to pay the balance on your credit cards or are otherwise hopelessly behind on repaying debts, you may actually worsen your situation if you try to pay off your debts without assistance.

The Law Office of Chad M Sherwood, LLC, helps individuals and small-business clients in Atlantic City and surrounding counties to eliminate debts, repay other debts and regain financial freedom through the Chapter 13 bankruptcy process.

Why Chapter 13? What Are The Advantages?

Many people who initially consider filing for Chapter 7 bankruptcy or other means of debt restructuring choose Chapter 13 instead. There are several reasons you may prefer this option:

  • You do not qualify for Chapter 7. This can happen if you make more income than is allowed under Chapter 7 rules. Middle-income earners and high-income earners may not qualify for this reason.
  • You want to keep specific assets. If you have a job and are capable of paying your debts, it is likely that you can avoid home foreclosure and vehicle repossession of your vehicles, while keeping other nonexempt possessions that you might otherwise lose to a Chapter 7 liquidation. This is because a Chapter 13 reorganization plan enables you to repay certain debts over time, instead of immediately surrendering money and property to creditors.
  • You want to make simpler payments. Payments under a Chapter 13 reorganization plan are made once each month and can cover obligations toward any loans, mortgage, vehicle payments or other debt. Under the right circumstances, a Chapter 13 bankruptcy reorganization may also allow you to stop foreclosure or repossession of your property.
  • You still wish to certain shed certain debts. Although Chapter 13 requires repayment of debts, many debts such as unsecured credit cards, second mortgages and excess debt on vehicles over market value can be discharged (the latter are accomplished through processes commonly known as “lien stripping” and loan “cram downs“).
  • You want protection from debt collectors. Both Chapter 7 and Chapter 13 bankruptcy settle creditor issues, the former by eliminating debts in a period of months, the latter by creating a structure for repaying some debts over three to five years. Either way, creditors are kept at bay. If you make your payments under a Chapter 13 repayment schedule, your creditors cannot garnish your wages, levy your bank accounts or otherwise harass you for more money.
Eliminating A Second Mortgage In Chapter 13 Bankruptcy
Many homeowners in South Jersey are not only struggling to make their house payments, but owe more than their home is worth. Making matters worse, they may be paying on a second mortgage such as a home improvement loan or home equity line of credit. If your first mortgage is “under water,” your second mortgage is essentially an unsecured debt, as there is no equity in the house to anchor the secondary loan. A major advantage of Chapter 13 bankruptcy is the ability to “strip” (eliminate) a second mortgage. We can determine if you qualify for lien stripping, which could wipe away many thousands of dollars in debt and make your home more affordable going forward.

How Will I Know If Chapter 13 Is Right For Me?

The amounts of the payments made under the Chapter 13 repayment plan are determined by your particular situation, including your level of income and expenses. Attorney Chad Sherwood can review your situation with you to determine what you will be able to pay and over how long.

More questions about bankruptcy? Get answers by reading our FAQ.

Free Consultation With A Chapter 13 Bankruptcy Attorney

The best way to investigate bankruptcy is to discuss your circumstances with an experienced bankruptcy lawyer who understands bankruptcy laws and procedures. For more information, call the Law Office of Chad M Sherwood, LLC, at 609-241-9377 or 866-261-2421 toll free. If you prefer, you can also complete our easy electronic intake form.

We offer free, initial consultations to our prospective clients. From our office in Pleasantville, we serve clients throughout the Atlantic City area and southern New Jersey.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Personable. Approachable. Experienced.

Take Action Today To Find Solutions That Work For You

Discuss your situation with an experienced Atlantic City bankruptcy lawyer. We offer a free, confidential consultation, including evenings or weekends by appointment. Call 609-241-9377 or 866-261-2421 or complete our electronic intake form.


We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Schedule Your Free Consultation