Q: What is Chapter 13 Bankruptcy?
A:
Known as a wage earner's plan, Chapter 13 bankruptcy is a way for an individual to reorganize or restructure their debt. Multiple debts will be consolidated into one, making it easier to pay off over a period of time that is typically between 3 and 5 years. Upon the completion of the payment plan, the debt will be discharged.
Q: How long do the payment plans last when you file under Chapter 13?
A:
The common length of time for most Chapter 13 bankruptcy cases is anywhere from 3 years to 5 years. The exact length of the payment plan will depend on the amount of debt and the person's income. Individuals with less debt and a larger income will usually have shorter payment plans than those who owe more debt and make less money.
Q: How hard it is to reestablish credit after filing Chapter 13 Bankruptcy?
A:
Chapter 13 bankruptcy may stay on a person's record for up to 10 years, which will make it difficult to obtain credit, loans, and almost anything where approval depends upon a person's credit history. Despite this fact, it is still highly possible to establish good credit once again. With the help of a lawyer, you can come up with a good, realistic payment plan, and upon completion of this plan, is you stay current on your bills and keep a close watch on your finances, it is very possible to recover your good credit once again.
Q: How do I know if Chapter 13 bankruptcy is right for my situation?
A:
If you have a regular steady income, are facing foreclosure, or are wishing to consolidate your bills, Chapter 13 bankruptcy may be for you. A New York Chapter 13 bankruptcy attorney will examine your case and take into account all of your financial information to help you determine whether or not Chapter 13 bankruptcy is a good option for you. Your lawyer will never steer you wrong, and they will always have your long-term, best interests at heart, so with their help, support, and legal expertise in this field it will be easier to make a decision regarding Chapter 13 bankruptcy.
Contact a New York Chapter 13 Bankruptcy Lawyer
at Jacoby & Jacoby today with any questions you may have about bankruptcy