Bankruptcy isn’t something people plan for or even want, but the truth is that it does happen. If you’re starting to feel that bankruptcy may be the only option left to you, it’s best to get yourself familiar with your options. This way you can make well-informed decisions. A bankruptcy attorney can help you with these difficult choices. Keep reading to learn more about the Chapter 13 bankruptcy option.

What Is Chapter 13?

According to the United States Courts, a Chapter 13 bankruptcy is a legal financial option that allows you to make payments over the course of 60 months to your creditors or have the debts discharged; these repayment plans often take three to five years and are court-ordered. The types of debts usually discharged in this bankruptcy would be medical bills, credit card debt, and personal loans. In order to qualify for this plan, the court must accept your repayment plan. This is why it’s a good idea to work with a bankruptcy attorney as they can help arrange this payment plan and get all of your documents in order for the court.

Who Should Apply for Chapter 13?

This is a good option for individuals who can pay back their debts but need a payment plan that is organized and negotiated to be beneficial to them. This may be a good choice for people who are not overwhelmed with certain types of debt such as alimony, child support, student loans, or taxes as these are types of debts that can’t be discharged or negotiated.

What Are the Advantages of Chapter 13?

This plan will consolidate your debts into one manageable payment per month. Oftentimes, the debt amounts are significantly negotiated to lesser amounts as well. As soon as you file, creditors must stop contacting you and go through the trustee instead. This can relieve a great deal of stress related to debt. In most cases, you’ll be able to keep your property and have time to pay off debt.

These are just a few things you should know about Chapter 13 bankruptcy. If you’d like to learn more about this option, we're here to help. To speak with a bankruptcy attorney, please contact Joseph P. Rigoglioso Attorney At Law today.