A Chapter 13 Bankruptcy, unlike a Chapter 7 Bankruptcy, does not provide a release of debt, but rather a restructuring of the debt in a manner that is considered manageable to repay the dept.
Many times the debt to be paid back may be less that currently owed through negotiation. In a Chapter 13 Bankruptcy, a debtor proposes a repayment plan to the creditors, over a 3 to 5 year period, in a good faith proposal to pay off all or part of the debts from the debtor's future income.
Creditors often will work with debtors in a Chapter 13 Bankruptcy, as Chapter 13 provides the opportunity to recover funds from you, as apposed to a Chapter 7 Bankruptcy where the potential to recover a larger portion of the debt is diminished.
Those who are more likely to file for a Chapter 13 Bankruptcy are individuals who seek to hold on to possessions such as a home, multiple vehicles, or other property or assets.
The longer an individual waits to obtain legal representation may directly affect their ability to achieve a successful outcome. Therefore, if you are considering filing for a chapter 13 bankruptcy, it is important to seek the legal advice and representation of an experienced chapter 13 bankruptcy attorney or lawyer as soon as possible.
The Law Offices of
John Gillespie: 386.308.1035
Tracey Kagan: 386.337.5445