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Repaying Your Debts Through Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is often referred to as a reorganization bankruptcy or a wage earner plan due to the fact that it takes your debts and reorganizes them into a repayment plan that will last three to five years. During that time period you will make payments to the bankruptcy trustee who will make payments to your creditors.

At Schwartz Bankruptcy Law Center, our lawyers understand that filing for Chapter 7 bankruptcy isn’t for everyone. We realize that some people would like to maintain their integrity by paying back their debts. They just need a little leniency to do it.

At our firm, we help you create an affordable repayment plan that takes your income and living expenses into consideration. We will come up with an affordable payment plan that allows you to pay only the amount of debt you can afford to pay based on your budget. The goal of the debt repayment plan is for you to succeed with it over that three- to five-year period and to emerge debt-free at the end of the plan.

Depending on your individual circumstances, you may be required to pay back anywhere from 10 percent of your debt to 100 percent.

How Can Chapter 13 Bankruptcy Help You?

Chapter 13 can help you get out from under debt and stop the various forms of creditor harassment while allowing you to keep your home and car. Like Chapter 7 bankruptcy, this form of bankruptcy has an automatic stay, which puts an immediate stop to:

  • Foreclosure actions
  • Car repossession threats
  • Wage garnishment
  • Harassing phone calls and letters from creditors

What Are Some Of The Situations Chapter 13 Is Best Suited For?

A key part of a successful Chapter 13 bankruptcy case is that the person seeking relief under Chapter 13 must have enough income to meet at least a portion of their financial obligations.

Chapter 13 bankruptcy is a good tool for helping people who are:

  • Facing foreclosure on their home
  • Facing the threat of losing their car to creditors
  • Recent returnees to work but were unemployed for a time
  • Experiencing cash flow problems and need lower payments to get back on their feet

Schwartz Bankruptcy Law Center | Offering Guidance And Support Every Step Of The Way

At Schwartz Bankruptcy Law Center, our goal is to help good people face their financial burden and get out from under debt with confidence. If you would like our help from a dedicated attorney, call our Louisville, Kentucky, office (502-485-9200), our New Albany, Indiana, office (812-945-9200) or toll-free (866-366-3328) to set up a free initial consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.