What Is Different About Chapter 13?
Chapter 13 bankruptcy is a type of reorganization bankruptcy that allows debtors to keep their assets while they make regular court-approved payments toward their debts. This is in contrast to Chapter 7 bankruptcy, in which a debtor’s nonexempt assets are liquidated and the proceeds are used to pay off debts.
Who Can File for Chapter 13 Bankruptcy?
Not everyone can file for Chapter 13. In order to take advantage of Chapter13 bankruptcy, you need to be able to show that you earn enough money to afford to make regular payments. In addition, your secured debts must not be more than $1,184,200, and your unsecured debts cannot be in excess of $395,725.
How Is the Chapter 13 Payment Amount Determined?
The amount that you will have to pay each month under your Chapter 13 plan depends on a variety of factors, including the following:
- The amount of money you make each month and your expenses
- Where you live
- The length of your plan
- The kinds of debts you have
How Long Does Chapter 13 Bankruptcy Last?
A Chapter 13 bankruptcy plan will last anywhere from three to five years. Many, if not all, of a debtor’s debts are discharged after the term of the plan, which means that the debtor is no longer under any obligation to pay them back. The effects of Chapter 13 bankruptcy can last much longer that the plan itself, however, as it can stay on your credit report for up to 10 years. As a result, you should file for Chapter 13 bankruptcy only after careful consideration of all your options.
Do I Need a Lawyer to File for Bankruptcy?
It is strongly recommended that you retain an attorney before you file for bankruptcy. A lawyer will thoroughly evaluate your case and discuss all of your options with you, ensuring that you make the best decision considering your particular circumstances and financial goals.
Call JLT Law Today to Find Out if Chapter 13 Bankruptcy Is Right for You
If you are having trouble meeting your monthly financial obligations in spite of earning a regular income, filing for Chapter 13 bankruptcy may be something to consider. To schedule an appointment to discuss your situation in detail with an attorney, call JLT Law today at (801) 896-9444 or send us an email through our online contact form.