Chapter 13 bankruptcy allows individuals and married couples to create a three to five year plan to pay back a portion of their debt. The length of the plan depends on the household income earned, with those households making less than the medium wage qualifying for a shorter time period, and the affordability of how much has to be paid back in the bankruptcy. The best way to know for sure what your plan may look like is to contact a qualified attorney.
There are many reasons why a Chapter 13 may benefit your situation better than a Chapter 7. Some of those situations may include those with past due payments for a home mortgage, past due car loan payments or monies being owed to the IRS. Including these types of unpaid debts in the Chapter 13 repayment plan will help avoid foreclosure, repossession or excessive IRS interest and penalties. The Chapter 13 repayment plan gives you the opportunity to catch up on those payments over the life of the plan, thus helping you keep your home and car.
Any unsecured debts that remain unpaid at the completion of the plan may be discharged, but learn more about your own financial options and whether Chapter 13 is the best choice for you by contacting Swindell Law Firm in Amarillo, TX.