A few years ago, I was in a pretty serious car accident. During the aftermath, I became really familiar with a lot of different types of lawyers. I worked with personal injury lawyers, insurance lawyers, and many others. Perhaps the most important, though, was the estate planning lawyer. I was really young, and neither my wife or I had thought about starting a will. But the accident kind of scared us into it. What would happen if one of us were to die? Even when still in the hospital, I was working with the lawyer to draw up a will. Now, I have some peace and security about what the future will be like if something should happen to me. And I have a lot of experience working with various types of lawyers! The accident was kind of a blessing in disguise in that way.
If you are filing for Chapter 7 bankruptcy, you will be able to discharge all of your debts. However, if you are filing for Chapter 13 bankruptcy, you will be paying off some of your debts over the course of a number of years determined by the law. After you have paid off much of your debt, you will be able to discharge the remaining amount. However, you might wonder how much of your debt you will have to ultimately pay.
You are required to pay all of your secured debts through Chapter 13. For example, if you have a car loan, you will be required to pay this debt off. Otherwise, the asset that is secured by the debt will be seized and sold to pay for the remainder of the debt. If the asset doesn't cover the full value of the debt, you may be able to have the remainder of the unsecured debt discharged.
If you are not sure about whether a particular debt will be discharged under Chapter 13, it's important to consult with a Chapter 13 bankruptcy lawyer. In some cases, your debts might be able to be discharged depending on the deal you are able to strike with the creditors.
Before you begin making payments, the court will request that you and your Chapter 13 bankruptcy attorney submit a repayment plan. You will need to look at your income and determine the types of payments you will be able to make. You will then use this information to file a Chapter 13 payment plan that you will be expected to follow.
Once the payment plan has been approved, you will begin making regular payments. This will occur before you meet with the trustee and attend the confirmation hearing and will continue afterward until you have finished your payment plan.
Affording Your Chapter 13 Payment Plan
You may begin to realize that you cannot afford Chapter 13. This is a common problem. However, you might worry about potentially losing your assets if you file for Chapter 7 bankruptcy. Fortunately, a lawyer might be able to help you make Chapter 7 work for you. You might be able to use debt settlement to reduce the amount of debt you owe or you might be able to settle some of your debt so that you can make your Chapter 13 payments more manageable.
To learn more, contact a law firm like the Law Offices of Dan Moulton.Share
2 May 2022