– I wanted to go over some issues with respect to Chapter 13 bankruptcy. Chapter 13 bankruptcy primarily is used for someone trying to save a house from foreclosure. It’s probably the number one reason we use Chapter 13. I’d say 70-80% of our cases are for that reason, and the Chapter 13 is a powerful legal strategy. No matter what stage of foreclosure your house is in, you can, in New Jersey, you can file the Chapter 13 bankruptcy, file a plan or reorganization, and catch up on any amount you fell behind on the mortgage. You can file that Chapter 13 bankruptcy any time up to a Sheriff Sale. So the foreclosure complaint is filed, and it takes New Jersey at least a year and a half to two years, generally, for the mortgage company to foreclose. It can be faster, it can be slower; but as long as you file that Chapter 13 bankruptcy before that Sheriff Sale, you could save that house. That is the critical thing to understand. The way a Chapter 13 works where you’re behind on a mortgage, I just wanted to go over those basics. I’m just going give you an example. Let’s say you’re $60,000 behind on your mortgage. You can file a Chapter 13, you can take that $60,000 and pay it over a 60-month plan. You have five years or 60 months to catch up on those arrears. So you’re $60,000 behind on the mortgage. You pay $1,000 a month to catch up on that mortgage; and it reinstates the original mortgage. So you start making the regular mortgage payments again, and you pay $1,000 a month to the Chapter 13 bankruptcy trustee, who disperses it to the mortgage holder to help you catch up on the mortgage. The bank has no choice in that situation. They have to accept those payments, and you can save your house. Another strategy, too, is to file the Chapter 13 and try to have the whole mortgage modified. In a Chapter 13 again, you can file this plan of reorganization to do that as well as if you have unsecured debts such as credit cards, medical bills, or personal loans, you can pay those creditors on a much lower percentage basis. So Chapter 13, you file the plan of reorganization, catch up on what you had fallen behind on your mortgage, and you pay a low percentage to unsecured creditors depending on your situation, your income, and your assets. For instance, you have $100,000 in credit card debt. You can pay that credit card debt potentially, depending on your situation, only 5% or $5,000 on $100,000 that you owe. Those are some basic Chapter 13 strategies. You can also use a Chapter 13, so if have some assets that may be liquidated in a bankruptcy, you can use the Chapter 13 to save those assets. We have to evaluate and determine what that payment is going be, but you can propose this five-year plan. Also, another thing you can do with Chapter 13 bankruptcy plan is pay tax debt over five years. What we do is we come up with a comprehensive plan to reorganize all this debt and to structure a way to deal with it, help you save your house; or if you don’t have a house and there’s other issues, to pay your creditors through this plan of reorganization. It would stop any lawsuits, stop any foreclosures, stop any collection activities: letters, threatening calls of creditors. Then it gives us the time as your attorney to restructure this debt for you and put forward a plan of reorganization to help you with all that debt.