Debt Repayment Plan
Are you weighed down by unmanageable debt, but make enough money to pay a portion of what you owe? Would you be able to catch up on payments if you were given some help? If the answer is yes, Chapter 13 bankruptcy might be an option for you.
At the Law Offices of Patrick M. Culhane, we strive to help you catch up on your payments by working to give you some breathing room. When you come to our Holbrook, Massachusetts, office, our experienced lawyer, who has been handling bankruptcy cases for 10 years, will clearly explain your options. This will allow you to make an informed decision about whether or not bankruptcy is the right choice for your situation.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is essentially a debt reorganization plan. With this type of bankruptcy, your debts are rolled into one monthly payment, which will be used to pay your various creditors over the next 36 to 60 months. After that time, most of your remaining debts are discharged.
Since this plan reorganizes rather than eliminates your debt, Chapter 13 bankruptcy is ideal for individuals with a lot of secured debt and a significant income.
Advantages of Chapter 13 bankruptcy include:
- Most of your debt is discharged after three to five years
- You can eliminate credit card debt
- You can pay off taxes without accruing interest and penalties
- Foreclosure proceedings immediately stop
- Most garnishments stop
- Creditor harassment must stop
- You can feel good that you are paying back what you owe
If you file Chapter 13 bankruptcy, you will need enough income to cover your living costs and continue making required payments.
The Means Test
When determining whether you qualify for Chapter 7 bankruptcy or Chapter 13 bankruptcy, the court uses the means test, which takes your income into consideration. Essentially, if your income is above a certain amount, you are eligible for Chapter 13 bankruptcy only.
To learn more about the means test and how it affects your situation, contact our office.
Helping You to a Brighter Financial Future
To discuss if Chapter 13 bankruptcy is right for you, contact us online or call our office locally at 781-767-7350 or toll free at 888-667-5698 to schedule a free initial consultation with an experienced attorney.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
