Once you know what is chapter 13 bankruptcy, you can begin the process of rebuilding your credit. It is important to remember that creditors still have 180 days to file against you before your plan is final. Your Chapter 13 plan will probably result in some of your debts being discharged, but not all of them. The following tips will help you get back on your feet after bankruptcy. You may also want to look into debtor education programs.
In a Chapter 13 plan, you will pay back unsecured debt, like credit card debt and medical bills. Your remaining unsecured debt is discharged. While you will have to make regular payments to your trustee, you will have a chance to make up the difference over time. If you still owe money to your creditors, you may be able to re-schedule those debts so you can make them more affordable.
In Chapter 13 bankruptcy, you will have a repayment plan that lasts between 36 and 60 months. Your property is safe, as long as you make the payments every month. You will still have to pay your mortgage, but you can keep your car or home. During this time, you will need to file your tax returns and provide copies to your trustee. The trustee will use 50% of your net tax refund towards your debt. If you earn more than the median income, you can keep the full amount.
While chapter 7 offers some protections, you should always consult a competent attorney before filing for bankruptcy. It is important to remember that bankruptcy laws have recently changed a lot, so it is important to make sure you consult a competent legal counsel before filing. Once you have an understanding of the bankruptcy laws, it will be easier to file. And remember, the sooner you file, the sooner you can begin repairing your credit score.
Chapter 13 bankruptcy, also known as a wage earner’s plan, is a way to pay back your debt over three to five years. Your monthly payments will be based on your disposable income. The payments will depend on how much disposable income you have after you pay your necessary monthly expenses. Chapter 13 bankruptcy can save your home and protect some of your assets that you might not have otherwise been able to keep. If you are looking for bankruptcy advice, you can contact a Lexington Law attorney today. You can also read our bankruptcy guide for more details.
The most common types of debts that are discharged through chapter 13 bankruptcy are medical bills, credit card debt, and personal loans. In addition to a discharge, the process also prevents creditors from continuing collections. The repayment plan is typically three to five years long, and a successful completion of the plan will result in a debt discharge or a debt forgiveness. However, there are a number of ways to file for bankruptcy.