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Chapter 13 Bankruptcy Explained

Published on May 27th, 2022

Chapter 13 Bankruptcy Explained - Documents for filing bankruptcy Chapter 13

Chapter 13 Bankruptcy Lawyer

The federal government has created a series of laws that allow individuals who are unable to pay their debts to restructure their debt into an affordable monthly payment plan. This is known as Chapter 13 bankruptcy and it provides people with a fresh start in life by giving them a chance to get out of debt by making small payments to their creditors over time.

Chapter 13 bankruptcy allows individuals who have fallen behind on their payments to use funds from future income to pay back creditors at a lower rate than they originally agreed upon. In many cases, this means that you will be able to keep your home or car while paying off your debts.

When you hire Pioletti Pioletti & Nichols as your Chapter 13 bankruptcy lawyer, you know that your case is in good hands.

If you’re considering filing for bankruptcy, there are several factors that should be taken into consideration before deciding whether or not Chapter 13 bankruptcy is right for you:

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a repayment plan that allows individuals with a regular income to restructure their debts. It differs from Chapter 7 in that it allows some debts to be repaid over time while other debts are discharged.

How does chapter 13 work?

If you file for Chapter 13 bankruptcy you will be given a repayment plan which will set out how much money you must pay each month towards your debts. This plan will last up to five years or until all of your unsecured debts have been paid off (whichever is sooner).

The repayment plan must also include a minimum amount that must be paid each month towards secured debts such as mortgages and car loans. If there is not enough money available in your budget to meet this minimum amount, then the court may order that excess funds from other sources be used to pay down these secured obligations before any unsecured debts are paid off.

We Will Help You Get Back on Your Feet

Our firm has helped many people regain control of their finances through Chapter 13 bankruptcy. We understand that this can be an overwhelming decision and we will be with you every step of the way. Our Chapter 13 bankruptcy lawyer will work with you to formulate a plan that will allow you to repay some or all of your debts over time in order to get back on track financially.

We Understand Your Situation

At Pioletti Pioletti & Nichols, PC, we know how stressful it can be when you find yourself in financial trouble because of high debt levels or other issues such as losing your job or experiencing an unexpected medical emergency. When you come to us for help, we will listen closely to what brought you here and create a customized plan just for your unique situation.

If you’re considering filing for Chapter 13 bankruptcy, it’s important to understand how this type of debt relief works and what it means for your finances going forward. A qualified Chapter 13 bankruptcy lawyer can help explain your options and guide you through this complicated process.

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