Joliet Chapter 13 Repayment Plan Lawyer
With Chapter 13 bankruptcy, debtors can work towards freeing themselves from the burdens of debt while keeping most of their personal property. Rather than liquidating property to repay creditors, Chapter 13 bankruptcy allows a person to establish a reasonable repayment plan to take care of debts in three to five years.
If you have found yourself in the stressful situation of owing money that you cannot repay, there is hope for you to pay off your debts and receive a fresh financial start with Chapter 13 bankruptcy. To learn more about your legal options, contact the Joliet Chapter 13 repayment plan attorneys of the Law Offices of Stuart B. Handelman at 815-722-2201 today.
How Does a Repayment Plan Work?
Chapter 13 bankruptcy requires a debtor to submit a repayment plan within 15 days of filing for bankruptcy. This plan must provide a comprehensive blueprint for how the debtor can pay back his or her debts or at least provide regular payments to creditors over a predetermined amount of time. In the repayment plan, a debtor will need handle the following types of debt:
- Priority debts—including special obligations like taxes or child support payments
- Secured debts—including debts assured through collateral such as cars or houses
- Unsecured debts—such as debts not attached to collateral
Priority debts must be paid out in full, except in very specific instances. Secured debts may be reorganized to either help a debtor repay the debt while keeping the collateral or give up the collateral to pay the debt. With unsecured debts, a debtor does not necessarily need to repay all debt as long as all of the debtor’s disposable income goes towards repaying these debts.
If you are facing debt that you simply cannot handle any more, we may be able to help you. For a free consultation regarding your options, contact the Joliet Chapter 13 repayment plan lawyers of the Law Offices of Stuart B. Handelman by calling 815-722-2201 today.