How Does Chapter 13 Bankruptcy Work?
Chapter 13 bankruptcy is a reorganization of debts. Many people find this type of bankruptcy empowering, because it allows them to work with their income and pay off at least a portion of what they owe, ultimately paving the way for elimination of debt and a more positive, controlled financial situation. Furthermore, you will not have to give up any of your property.
The lawyers at Rothschild & Ausbrooks, PLLC, will work directly with you, learning about your income and your debts. We will help you create a debt repayment plan that makes sense in your situation. We will educate you about exactly how Chapter 13 will work for you, and we will stand by your side from the start of the process until the finish.
The Immediate Impact of Chapter 13 Bankruptcy
Even though the Chapter 13 process takes time, you will feel the positive impact immediately. The creditor harassment will stop. The threats of foreclosure and repossession will no longer cause you to lose sleep. This is all thanks to the automatic stay, which halts all creditor actions.
Chapter 13 Bankruptcy Eliminates Debt
A repayment plan will be created that will involve you paying back a portion of your debts over the course of three to five years. The Chapter 13 plan and confirmation hearing are based on your income and your debts. At the conclusion of this period, the majority of your remaining debt will be eliminated, leaving you essentially debt-free. While the Chapter 13 discharge attacks the vast majority of unsecured debt, including credit card debt and medical debt, it is designed to help you regain control of all debts. Even though you may not be eliminating your mortgage debt because you want to keep your house, getting rid of your other debts frees up financial resources to make all remaining payments.
Our attorneys have more than three decades of experience helping people in Nashville and throughout Tennessee determine if they can benefit from Chapter 13 bankruptcy.
Contact Us for a Free Bankruptcy Consultation
Please contact Rothschild & Ausbrooks, PLLC, today to get an answer to the question, “How does Chapter 13 bankruptcy work?”