Chapter 13 bankruptcy is a type of bankruptcy that allows you to repay your debts over a period of time, usually 3 to 5 years. It can be a good option if you are struggling to make your monthly payments and are facing foreclosure or repossession.

How Much Is Your Payment?

Your Chapter 13 monthly payment is determined by a number of factors, including your income, expenses, and debts. The goal of Chapter 13 bankruptcy is to allow you to repay your debts over a period of time, usually 3 to 5 years. The amount of your payment will be based on what you can afford to pay, while still being able to meet your basic living expenses.

Here are some of the factors that will be considered when determining your Chapter 13 payment:

• • • Your income: Your disposable income, which is the amount of money you have left after paying for your basic living expenses, will be the main factor in determining your Chapter 13 payment.
    • Your expenses: Your expenses, such as housing, food, transportation, and healthcare, will also be considered when determining your Chapter 13 payment.
    • Your debts: The amount of debt you have will also be considered when determining your Chapter 13 payment.
    • Your ability to pay: The court will also consider your ability to pay when determining your Chapter 13 payment. If you are unable to afford to make a payment that would fully repay your debts, the court may allow you to make a smaller payment.

What are the benefits of Chapter 13?

Filing for Chapter 13 bankruptcy can also help you:

• • • Catch up on mortgage payments and keep their home. If you are behind on your mortgage payments and are facing foreclosure, filing for Chapter 13 bankruptcy can help you catch up on your payments and keep your home. In a Chapter 13 bankruptcy, you will create a plan to repay your creditors over a period of 3 to 5 years. This plan can include your mortgage payments, as well as other debts, such as credit card debt, medical bills, and personal loans.
    • Save your car from repossession. If you are behind on your car payments and are facing repossession, filing for Chapter 13 bankruptcy can help you save your car. In a Chapter 13 bankruptcy, you will create a plan to repay your creditors over a period of 3 to 5 years. This plan can include your car payments, as well as other debts, such as credit card debt, medical bills, and personal loans.
    • Reduce or eliminate unsecured debt. Unsecured debt is debt that is not secured by collateral, such as a house or a car. This type of debt can include credit card debt, medical bills, and personal loans. In a Chapter 13 bankruptcy, you can propose to repay your unsecured debt over a period of 3 to 5 years. However, you may be able to eliminate some or all of your unsecured debt if you can prove that it would be an undue hardship for you to repay it.
    • Stop Garnishment & Lawsuits. If you have been sued and are facing a judgment, filing for Chapter 13 bankruptcy can stop the collection efforts of your creditors. In a Chapter 13 bankruptcy, your creditors will be required to stop all collection efforts, including wage garnishment, asset seizures, and lawsuits.
    • Get a fresh start. If you are struggling with debt and feel like you are drowning, filing for Chapter 13 bankruptcy can give you a fresh start. A Chapter 13 bankruptcy will stop the collection efforts of your creditors, give you a chance to catch up on your payments, and allow you to develop a plan to repay your debt over a period of time.
    • Protect your assets. If you are facing foreclosure or repossession, filing for Chapter 13 bankruptcy can help you protect your assets. The automatic stay that goes into effect when you file for bankruptcy will stop your creditors from taking any action to collect your debt, including foreclosure or repossession.
    • Lower your interest rates. If you are struggling to make your monthly payments, filing for Chapter 13 bankruptcy can help you lower your interest rates. In a Chapter 13 bankruptcy, you will create a plan to repay your creditors over a period of 3 to 5 years. This plan can include a provision that your creditors agree to lower your interest rates.
    • Consolidate your debt. If you have multiple debts with high interest rates, filing for Chapter 13 bankruptcy can help you consolidate your debt into one monthly payment. This can make it easier to manage your finances and make your payments on time.

Want more info?

Please contact me at your earliest convenience to schedule a free consultation to discuss the specifics of your case.

You can also self-schedule an appointment by going here:

http://butwinicklaw.com/index.php/appointments/

I look forward to hearing from you.

Jeff Butwinick

651-210-5055