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Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a repayment plan for your debts and typically lasts three to five years depending on your income.

In order to qualify for a Chapter 13 you must be employed or have a regular source of income to fund your plan.

Your income is based on the last six months that you have worked and is inputted into a government based means test to determine how much you will have to pay back to your unsecured creditors. Usually, the amount needed to pay back to your unsecured creditors is much less than 100% of what is owed. If you complete your plan and get a discharge, any remaining balance owed on your non-dischargeable unsecured debts will be discharged.

Typical reasons to file a Chapter 13 versus a Chapter 7 are to try to save your home or your vehicle. In Chapter 13 you can still keep your home or vehicle even if you are behind on these payments. If you are behind on the mortgage payments a Chapter 13 allows you to freeze the amount you are behind on and pay it back over the term of your plan. The filing of a Chapter 13 will prevent a foreclosure or repossession and through the filing of your plan you will pay these debts back over the course of your plan.

A Chapter 13 will also freeze interest and penalties on IRS debts thereby allowing you to pay back what you owe to the IRS as of the date you file without any extra interest or penalties being charged.

CALL US TODAY (888-517-5300) to learn more about filing a Chapter 13 bankruptcy and how we can help you.