Chapter 13
When an individual does not qualify for Chapter 7 bankruptcy, he or she is most likely eligible to file for Chapter 13. In most cases, individuals who file for Chapter 13 bankruptcy have suffered from a temporary loss that has put them too far behind in debt to catch up on their own, or to meet the unreasonable demands of creditors. The bankruptcy law is on your side.
Chapter 13 bankruptcy will stop creditors in their tracks immediately and allow you to consolidate debt and restructures it into a monthly payment plan that is affordable to you. Usually people awarded Chapter 13 make sufficient income to cover their living expenses, but not enough to pay off debts in full or according to the unreasonable demands of creditors. With careful planning with a skilled attorney, a debtor who files for chapter 13 bankruptcy pays for living expenses first, and then money left over is used to repay creditors on very affordable terms, often for just pennies on the dollar.
Chapter 13 bankruptcy cases typically last for three to five years from initial filing to discharge, depending on the individual’s ability to pay.
Please contact our office to discuss whether Chapter 13 bankruptcy is right for you.
