Filing for Chapter 13 bankruptcy allows you to reorganize most of your personal finances by setting up a monthly payment to your creditors that pays back a portion of the amount you owe. The amount required to be paid on these bills is determined by several factors, including the amount and type of debts you have, the amount you can afford to pay each month, and the value of the property you owe.
In order to file for Chapter 13 bankruptcy, you must have a regular source of income. Chapter 13 will not result in the loss of property unless you choose to return property, and it will help you handle payments to difficult creditors like the IRS and student loans.
Payment plans can last between three and five years. For most of your debts, the payment plans will completely eliminate the entire debt — even if the debt is not paid in full by the end of the payment plan. Individuals with a steady source of income and the ability to make consistent payments on their debt may find chapter 13 bankruptcy as an appealing option.
This is a common question that individuals have when they begin to consider bankruptcy. While both options can provide a viable solution for overcoming your debt and getting your life back on track, there are a few key differences to consider that may sway your decision. Those include:
Of course, this is just a general overview of the differences between Chapter 7 and Chapter 13. If you’re unsure which option may work better for you, contact our team for a free consultation. You can learn how each option will affect you short-term as well as long-term factors to consider.
Bolton Law Group, P.A. serves individuals and businesses seeking bankruptcy advice and debt relief. With offices in Greensboro and Winston-Salem, North Carolina, the board certified attorneys of Bolton Law Group have assisted more than 15,000 individuals and businesses in the Piedmont Triad area. Attorneys Phil Bolton and Diana Santos-Johnson will consult with you about your options, provide expert guidance for financial recovery, and give you long-term advice that’s built on strong financial principles. Contact our team today to learn how you can get the financial restart you need.