Chapter 13 bankruptcy is often complex and requires Chapter 13 bankruptcy attorney services to navigate. That’s because, unlike other forms of bankruptcy, Chapter 13 lets you pay back debt based on your current income. To do this, legal strategies for complex debt repayment are needed and are worth the effort since you may not have to liquidate all of your assets.
How Chapter 13 Bankruptcy Works
Chapter 13 bankruptcy focuses on paying debts with the income that you have rather than liquidating your assets. The goal is for the court to help you reduce your debts to a level that you can pay and for you to pay back as much as possible with just what you earn.
Needless to say, this process usually requires legal strategies for complex debt management since you are currently not paying your debts with your income. A part of the process is determining how much you can pay. Then, the court puts you on a payment plan so that you can make payments. At the end of the process, whatever debts you don’t have paid off can be erased if you stick to the plan.
Can Anyone Qualify for Chapter 13 Bankruptcy?
Not everyone is qualified for Chapter 13. There are specific criteria that you need to meet, most important is that you have a steady income with enough room in it to make payments. That way, there is something for your lawyer and the court to work with to help pay off creditors.
Will Bankruptcy Take All of My Money?
In a nutshell, all of your income will be accounted for in your debt repayment plan. Any disposable income (extra income not used to pay bills) will go toward your debt payment plan. You may not be able to save money while in bankruptcy, but sticking to the plan means that you will be out of debt in up to five years.
How Complex is Chapter 13?
Chapter 13 requires more complex legal strategies for complex debt because the system is trying to pay off debts rather than expunge them. Unsecured debts may not be fully repaid, but secured debts should be. This makes it difficult to find ways of satisfying as many debts as possible while protecting your assets and making sure that your debt becomes something that you can afford. It takes Chapter 13 bankruptcy attorney services to navigate the bankruptcy process.
Contact Kain + Henehan for Help
With debts looming, don’t wait until you are drowning to ask for help. A bankruptcy attorney can make a big difference in how your bankruptcy process goes and how easily you can work your way out of debt. Be proactive about bankruptcy to make sure that you have the best chance at success.
Kain + Henehan, bankruptcy attorneys in St. Cloud, MN, are here to help you find the best way to resolve your debts. Call Kain + Henehan, bankruptcy attorneys in St. Cloud, Minnesota, at (612) 438-8006 or use the contact form to schedule a consultation about your case.
