Chapter 13 Bankruptcy Lawyer in New York City

• Maximize your legal exemptions. We work to help you keep as many of your assets as possible, as allowed under New York law.
• Negotiate sustainable payments. We use detailed financial analysis to build a plan that you can actually afford, reducing the risk of a future dismissal.
• Defend against creditors. If a lender challenges your plan or tries to lift the automatic stay, which ends all collection attempts, we provide aggressive representation in court. 

The Power of Chapter 13 for NYC Homeowners

Chapter 13 is the premier legal tool for foreclosure defense. 

If you have fallen behind on your mortgage, this process offers several unique advantages:

• Stops foreclosure immediately. The filing of your bankruptcy petition triggers the automatic stay, which instantly halts any scheduled foreclosure sale or ongoing collection lawsuits.
• Cures mortgage arrears. Chapter 13 allows you to cure your missed mortgage payments by spreading them out over the life of your 36- to 60-month plan. As long as you make your current monthly mortgage payments and your plan payments, you can keep your home.
• Lien stripping. In certain cases, if your home’s value has dropped below the balance of your first mortgage, we can use Chapter 13 to strip a second or third mortgage, reclassifying it as unsecured debt that may be wiped away at the end of your plan.
• Protect co-signers. Chapter 13 features a unique “co-debtor stay” that can protect family members or friends who co-signed on consumer loans from creditor harassment while your plan is active.

How the Chapter 13 Process Works

Navigating a Chapter 13 case requires a high level of technical precision. 

At VMW Law, we use advanced technology to streamline every phase of the process:

• The proposed plan. We work with you to draft a repayment plan based on your disposable income, the amount remaining after your necessary living expenses (housing, food, utilities) are paid. This plan outlines exactly how much each creditor will receive over the next three to five years.
• The trustee’s role. A court-appointed trustee will oversee your case, collecting your single monthly payment and distributing it to your creditors. You will no longer have to deal with creditors directly.
• The 341 meeting of creditors. About a month after filing, you will attend a brief meeting where the bankruptcy trustee verifies your financial information. Our firm prepares you thoroughly for this meeting to create a smooth outcome.
• Confirmation hearing: The bankruptcy judge must confirm that your plan meets all legal requirements. We advocate on your behalf to resolve any objections from creditors and secure the court’s approval.
• The discharge: Once you complete all payments under your plan, the court issues a discharge, legally wiping away any remaining balances on qualifying unsecured debts like credit cards and medical bills.

Who Qualifies for a Chapter 13 Bankruptcy?

To qualify for a Chapter 13 bankruptcy in New York, you must meet four primary criteria:

• Individual status. Only individuals and sole proprietors can file. Corporations, LLCs, and partnerships are not eligible and must typically use Chapter 11.
• Regular income. You must demonstrate a stable source of income (wages, self-employment earnings, pensions, or even Social Security) that is sufficient to fund your three- to five-year repayment plan after covering your basic living expenses.
• Tax compliance. You must be current on your federal and state income tax filings for the four years preceding your bankruptcy petition.
• Debt limits: Your "noncontingent, liquidated" debts must fall below federal thresholds for unsecured debt (such as credit cards, medical bills) and secured debt (such as mortgages and auto loans).

Partner with Our New York City Chapter 13 Bankruptcy Lawyer

Filing under Chapter 13 bankruptcy involves strict eligibility rules, detailed financial disclosures, and a court-approved repayment plan that must comply with the Bankruptcy Code. 

Our firm helps structure a feasible plan, accurately classify debts, and protect assets while navigating trustee and creditor objections. Without legal guidance, errors in filings or plan terms can lead to dismissal or loss of protections, making experienced counsel critical to completing the process successfully.

If you are facing runaway financial debt, the potential loss of your home or other assets, or don’t qualify for a Chapter 7 liquidation bankruptcy, we urge you to get the advice and guidance you need to determine if a Chapter 13 bankruptcy is the right option for you.

Call (845) 547-7856 or reach us online to schedule your confidential case evaluation with our New York City attorney today.