The Chapter 13 bankruptcy process is complex and can be confusing for many people who are seeking debt relief. You should always confer with an experienced bankruptcy lawyer before filing a personal bankruptcy, but below are three facts you may not know about filing a Chapter 13:
- There are significant differences between Chapter 7 and Chapter 13.
The Chapter 7 process typically involves one trip to the courthouse, it takes four to six months to complete, and it is less expensive than a Chapter 13. However, if you have significant non-exempt assets, the trustee has the ability to sell them in order to pay your debts. In a Chapter 13, you can keep your property and pay your debts (fully or partially) through a repayment plan that is based on your income (not your assets).
- You many not qualify to file a Chapter 13 bankruptcy.
A Chapter 13 plan must last a period of three to five years. You must have a source of income and be able to prove to the court that you will be able to make your plan payments. Thus, if you have no-income (or even if you have low-income), you may not be eligible to file a Chapter 13. Even if you have a source of income, if your debts are too high, you still may not qualify.
- The amount of your income will determine the length of your Chapter 13 plan.
We can look at the amount of your income and the amount of your debt to help you understand how long your Chapter 13 case is likely to last. Generally speaking, if your income is higher than the median income for your state, your more likely to have a five-year plan. If your income is less than the median, you may qualify for a three-year plan. Once you have completed your repayment plan, your eligible remaining debts are eliminated.
If you are considering filing a personal bankruptcy, contact us to learn more about your debt relief options. We can help you understand if you qualify for a Chapter 7 or Chapter 13 case and how you will benefit from a filing.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC. DeLadurantey Law Office focuses on student loan debt, Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense. A “defender of the little guy, “DeLadurantey Law Office serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. We can be contacted by phone: (414) 377-0518 and can be found on the Internet and on Facebook.