Understanding The Chapter 13 Repayment Plan
Perhaps the most notable feature of filing for bankruptcy under Chapter 13 is the debt repayment plan. Instead of giving up assets that are sold to go toward the debts, as in Chapter 7 bankruptcy, people who file for Chapter 13 bankruptcy enter into a repayment plan, in which creditors are paid back on a monthly basis.
As the founder of the Steele Law Firm, I have helped many Fort Worth residents emerge from their personal debt by working with them in a Chapter 13 bankruptcy. Having an experienced bankruptcy attorney on your side can help you to better understand the process so that you know what to expect — and what is expected of you.
Finding Your Way Out Of A Difficult Situation
Being weighed down with large amounts of credit card debt, medical debt or other liabilities can make day-to-day living very difficult. Many people would pay off their accounts, or at least pay them down, but in many cases, the interest is so high that they have trouble even making a dent in their balances.
Under Chapter 13 bankruptcy, you must repay secured debt — that which is backed by collateral — and priority debt, which includes back taxes and child support payments, in full. You repay a portion of your unsecured debt, which includes credit card debt. Plan lengths run from 36 to 60 months.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.