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Chapter 13 bankruptcy is often called a "reorganization" bankruptcy because it allows you to create a repayment plan for your debts over a period of 3 to 5 years. If you’re struggling with debt but have a steady income, this may be the perfect option to get your financial life back on track.
As a bankruptcy attorney in Sebring, Florida, I’ve helped many clients successfully navigate Chapter 13 bankruptcy. Here’s what you need to know about the repayment plan process.
How the Chapter 13 Repayment Plan Works
In Chapter 13, you’ll propose a repayment plan that reorganizes your debts into one manageable monthly payment. This plan is based on your income, expenses, and the total amount of debt you owe. Once the plan is approved by the court, you’ll make payments to a trustee, who will distribute the funds to your creditors.
The repayment plan lasts between 3 and 5 years, depending on your income level. At the end of the plan, any remaining eligible debts are discharged.
What Debts Can Be Included in the Plan?
Chapter 13 bankruptcy allows you to include many types of debts in your repayment plan, including:
Mortgage arrears: Missed mortgage payments can be added to the plan, so you don’t lose your home.
Car loans: You can catch up on overdue car payments and avoid repossession.
Credit card debt: While credit card debt is usually paid off for a fraction of the balance, it can be included in the plan.
Unsecured loans: Medical bills, personal loans, and even some types of tax debt can be included in the repayment plan.
Benefits of Chapter 13 Bankruptcy
Chapter 13 offers several benefits, including:
The ability to save your home from foreclosure.
A chance to keep valuable assets, like your car, while paying off debt.
The ability to reduce or eliminate certain types of unsecured debt.
Protection from creditor harassment through the automatic stay.
Why You Need Professional Guidance
The Chapter 13 process can be complicated, and the repayment plan must be approved by the court. Working with an experienced bankruptcy attorney ensures that your plan is set up properly and that your interests are protected.
Let’s Work Together for a Fresh Start
If you’re overwhelmed by debt but want to keep your home and property, Chapter 13 bankruptcy could be the solution. I’ll guide you through the entire process, from creating a repayment plan to getting your debts discharged.
Get Started Today
Call my office at [insert phone number] to schedule a free consultation. Together, we’ll explore how Chapter 13 bankruptcy can help you regain control of your finances and work toward a debt-free future. Don’t wait—take the first step today!