Chapter 13 Bankruptcy: Reorganizing Your Debt
Unlike a Chapter 7 bankruptcy, filing for Chapter 13 will not cancel all your outstanding debt. Instead, most of your debt will be reorganized, enabling you to pay off your debt under an affordable repayment plan. The length of this plan can range from three to five years, and most debt that is left over after this time period will be forgiven. Having an experienced lawyer on your side who can help guide you through this process is essential to helping you get the most benefit from your bankruptcy filing.
At Affordable Law, PC, Attorney Matthew Gandert has been helping people throughout New Mexico get on the path to a better financial future for more than 20 years. If you find yourself overwhelmed by outstanding bills, we can help determine whether filing for bankruptcy is the right option for you.
Is Chapter 13 Best For Me?
Chapter 13 bankruptcy does not have any income eligibility requirements. However, you still need to have enough income to make payments under your reorganization plan. If you have limited income, a Chapter 7 filing might be a better option. Although there is not an income requirement to be eligible for Chapter 13, there is a debt limit. If you have secured debts, such as your home or vehicles, in excess of over $1 million, you will not be eligible for Chapter 13 protection. In addition, if your unsecured debt, such as credit card bills or medical expenses, is more than $336,900 you will not be eligible for this form of protection. That is why it is important to work with an attorney who can help develop a complete picture of what your outstanding expenses look like.
What To Expect From A Repayment Plan
All debts are not considered equal when reorganized into a repayment plan. Some debt, such as child support, is considered a priority and must be paid before other debts. In addition, regular payments on any secured debt, such as car loans and home mortgages, must continue. Any remaining disposable income can then be used to make payments toward any unsecured debts. Any unsecured debt that is left over once your repayment plan has run its course will be forgiven. The length of the repayment plan will depend on your current income level and the amount of debt you have. If you find yourself unable to complete the repayment plan, it may be possible to seek a modification or ask to have your debt discharged on the basis of hardship.
Contact Us For A Free Consultation To Discuss Your Debt Relief Options
To learn more about Chapter 13 and whether this is the right option for you, call our law office in Albuquerque at 505-633-8723 to schedule a free initial consultation. You may also contact us online and we will get back to you shortly.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.