Chapter 13 of the bankruptcy code gives debtors the opportunity to repay some or all of the debts that are in their name, in better terms, lower or no interest. Debtors have the ability to use income they have in the future to pay off creditors.

A time frame of 5 years is allotted for debtors to be able to pay of their creditors in full. Your attorney will safeguard your interests, while the entire process is carried out under court supervision. A new interest free plan is approved by the court, which allows debtors to repay their creditors and still retain all of their property, unlike Chapter 7 bankruptcy. A list of transactions and time duration is created for this process. Thirty to forty-five days after the case has started, payments must begin to be made.

To know if Chapter 13 Bankruptcy is the right choice for your financial interests, you will first need to fill out an evaluation form as with all Chapters of Bankruptcy

Do I Qualify for Chapter 13 Bankruptcy?

Individuals must show consistent and sufficient income to pay their proposed payment plan payments in order  to qualify for Chapter 13 Bankruptcy. Those who have enough income to make the restructured payments to creditors can qualify for Chapter 13.

You qualify for Chapter 13 if you:

• Have a significant amount of debt
• Have enough monthly income to pay a portion of your debt 
• Like the idea of paying something to creditors, even if this a small amount 
• Are current in your tax filings
• Seek to rebuild your credit by demonstrating a positive payment record to the Trustee

How Long Does The Chapter 13 Process Take?

The process takes 36-60 months on average, but can be completed faster. Your circumstances impact the type of payment plan that the court will approve to resolve your debts. One of the benefits of working with Goldsmith, Katz & Argenio is that you will have our legal expertise and ability to leverage our experience with the debt relief process , getting you on your way to financial freedom sooner rather than later.

Will My Credit Rating Recover After?

Yes, with the right steps you can begin rebuilding your credit immediately after bankruptcy — but strengthening  your score can take several years depending on your score and your ability to repay creditors.