As the economy continues to struggle, millions of people have had to file for bankruptcy in the past few years so they could get out of debt. The second most popular form of bankruptcy for individuals is Chapter 13, which gives debtors the option of establishing a plan to repay creditors over a period of three to five years. Instead of liquidating assets to pay off creditors like with Chapter 7, Chapter 13 lets people keep their personal property as they slowly pay off loans and debts.
Chapter 13 Bankruptcy Considerations
It is important that you understand your rights as well as the bankruptcy process before filing so you can get the results you want. Keep in mind the following:
- Chapter 13 lets people reschedule and potentially extend payment plans for certain debts so that actual payments may be less.
- Your credit report will show your bankruptcy filing for seven years after you file.
- To file for Chapter 13, your total unsecured debts cannot be over $360,475 and total secured debts cannot exceed $1,081,400.
There are many benefits to Chapter 13 bankruptcy, and a knowledgeable attorney can help you file for the financial protection you need under Chapter 13.
Filing for bankruptcy can be a very trying and difficult time in your life. This process can be confusing, but you don’t have to go through it alone. At the DeLadurantey Law Office, LLC, a Milwaukee bankruptcy attorney can help you get out of debt so you can focus on moving forward with your life. Call our offices today at 414-377-0518 and schedule a free consultation.