Watch this video to learn about paying your debts in full in a Chapter 13 bankruptcy in South Jersey. We know how much it can feel scary to take a leap to file for bankruptcy. Give call Andrew Carroll for a free consultation.
Question:
Do I have to pay all my debts off in full in a Chapter 13 bankruptcy?
Answer:
A common question we get from our Chapter 13 clients here in our South Jersey office is, “Am I required to pay back all my debts in full? After all, Chapter 13 is a repayment plan.” It depends on what kind of debt it is. Some debts you’re required by federal law to pay back in full, while other debts can be paid for at pennies on the dollar. If you have any questions about what must be paid in full or what will be paid for pennies on the dollar, or if Chapter 13 bankruptcy is right for you, please call our office.
Chapter 13 bankruptcy is also called a wage earners plan. It is designed to help people who have steady income but who are having a difficult time managing debt. Chapter 13 bankruptcy lets you create a debt management plan that can span over three to five years.
The timeline in which you pay back your debt is going to be based on your income. There is an income threshold, too, that you should discuss with your South Jersey chapter 13 bankruptcy attorney. If you are under it, you will be repaying your debt in three years. If you are over the threshold, you are going to be looking at repaying your debt within five years. You may be able to be approved for a longer timeline, if you are set to repay it in three years. The repayment schedule cannot extend beyond five years. Our South Jersey chapter 13 bankruptcy attorney can answer any questions you have.
There are some serious advantages you should know about. Chapter 13 means you likely won’t have to liquidate your assets to repay your debt, as you would with chapter 7 bankruptcy. Your house will not go into foreclosure when you have the help of chapter 13 bankruptcy. You do, however, need to continue making mortgage payments on time.
Another good thing about chapter 13 bankruptcy is that any of your secured debt can be rescheduled. This secured debt doesn’t include your mortgage on your house. The rescheduling of your secured debt, however, can be great because it means you are going to possibly have lower payments.
Are you or a loved one unable to pay your debts and have questions about paying your debts in full in a Chapter 13 bankruptcy? Contact experienced South Jersey Chapter 13 bankruptcy attorney Andrew Carroll of All Jersey Bankruptcy today for a free consultation and case evaluation.
We are dedicated to giving you the answers that you need in order to make an informed decision about whether bankruptcy is the best decision option for you.
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