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A Chapter 13 bankruptcy involves a court-approved three to five year repayment plan that is created by your attorney and you. The monthly payment amount is dependent on two primary things: your income level and your non-exempt assets. Depending upon the circumstances of your case you may pay back a portion or all of what is owed to your creditors before your bankruptcy started. You can even pay your attorney’s fees and costs for the bankruptcy as a part of your Chapter 13 Plan.
If you are having difficulty paying your bills because your expenses far exceed your income, Chapter 13 bankruptcy may be what you need to set your finances straight. It is very important to speak to your bankruptcy attorney as soon as possible so that the petition can be completed and filed with the court.
Chapter 13 bankruptcy is also referred to as “reorganization bankruptcy” because it involves reorganizing debt. It is a more subtle approach to getting your finances under control and you can actually protect your assets from being used to satisfy debt as long as you make all of the payments in your payment plan.
It is important to understand that filing Chapter 13 bankruptcy is not a sign of financial failure. Circumstances can change and that can result in financial difficulties. Bankruptcy is simply a tool that allows you to get back on your feet so you can be healthier financially.
What you will need to do first is speak with an experienced Duluth bankruptcy lawyer as soon as possible to determine if bankruptcy is the right choice for you. You will review your finances so that you can determine which type of bankruptcy is the right one to file. If Chapter 13 is the best one to file, then you and your attorney will be able to create a payment plan that will be presented to the court. The judge can then approve or deny the plan. If he or she denies it, then a new plan will need to be created and presented to the court again. The plan that you and your attorney create together will be one that you can afford so you can pay your bills and your everyday living expenses.
Your repayment plan will last from three to five years. How long depends on the percentage of the debt being paid back and what you can afford. Once the repayment plan is complete, your debts will then be discharged so that you can move on.
Before you file, you will have to complete a required credit counseling course. This course will give valuable information that you can take with you after your debts are discharged.
When you have difficulty paying your bills, there are options available. Chapter 13 bankruptcy is one of those options so you can have a fresh start financially and relieve yourself of the great deal of stress your finances have been placing on you. To learn more about how the Benjamin Kaasa Law Office, PLLC can help you, call 218-464-3397 for a consultation.