Understanding The Chapter 13 Bankruptcy Repayment Plan
When you are facing unmanageable debt, finding a way forward can seem daunting. Chapter 13 bankruptcy, often called a bill consolidation bankruptcy, offers a good path forward for many people.
Under this form of bankruptcy, the court establishes an affordable, three-to-five-year repayment plan for all your qualifying debts. This allows you to systematically pay off debt while retaining assets like your car and home.
At Robert W. Raley - Bankruptcy Lawyer, our attorney’s approach is rooted in understanding your unique situation and getting you exactly the help you need through bankruptcy. With 45 years of experience and certified specializations in both consumer and business bankruptcy law, attorney Robert Raley brings deep knowledge and a compassionate perspective to every case.
What Is A Bill Consolidation Bankruptcy?
Chapter 13 bankruptcy can provide relief for people who have an income and who want to pay their debts but who cannot currently do so under their creditors’ terms. By filing for Chapter 13, you can stop foreclosures, repossessions and wage garnishments.
This type of bankruptcy combines all your qualifying debts into an affordable monthly payment plan. This allows you to tackle large obligations, like home mortgage back payments, while adjusting smaller debts to more manageable levels, often with reduced or even no interest.
What Is The Chapter 13 Repayment Process?
The repayment process under Chapter 13 involves setting up a bankruptcy repayment plan. You make affordable monthly payments on your consolidated debts to a bankruptcy trustee, who then turns the funds over to your creditors.
Your exact repayment plan will depend on your income, debt amount and reasonable living expenses. As your Chapter 13 bankruptcy attorney, Mr. Raley will help ensure that your plan is realistic and reflects your ability to pay, providing you with a feasible route to regain your financial stability.
How Long Does A Chapter 13 Plan Last?
The duration of a Chapter 13 bankruptcy repayment plan typically ranges between three and five years. The length of your plan depends on your income level relative to the median state income and your expenses. Higher-income individuals, for example, might see longer plan durations closer to five years.
What Happens If You Can’t Manage Your Repayment Plan?
Successfully completing a Chapter 13 bankruptcy repayment plan can lead to most of your remaining debt being wiped out, giving you a fresh financial start. However, if circumstances arise that prevent you from fulfilling your repayment obligations, then it’s crucial to consult with our lawyer right away. Solutions may include modifying the plan or exploring alternative debt relief options under the Bankruptcy Code.
Ready To Start Your Journey Toward Financial Freedom?
Facing financial challenges can be overwhelming, but you don’t have to do it alone. Contact our firm today to arrange a free consultation where attorney Raley can discuss your specific circumstances in detail. Our consultation process is designed to provide clarity and confidence as you consider the possibility of filing for bankruptcy.
At our Bossier City law firm, our lawyer is committed to helping you understand all available options and supporting you every step of the way toward achieving debt relief and financial stability. We serve Bossier Parish, Shreveport and the surrounding communities.
Call 318-747-2230 or email us now. Let attorney Raley help you take that first step toward regaining your financial freedom.