Chapter 13 Bankruptcy Demystified: Securing Your Financial Freedom
A Chapter 13 bankruptcy, also known as a reorganization bankruptcy, is a longer process compared to a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you make a payment plan to repay all or a portion of your debts over 3 to 5 years. This type of bankruptcy is often chosen by individuals who do not qualify for Chapter 7 or want to protect certain assets, such as a house or car, from being liquidated.
Creating a Payment Plan
When filing for Chapter 13 bankruptcy, your Oklahoma City bankruptcy attorney will help you create a repayment plan that outlines how much and how you will repay your creditors. This plan will detail specific amounts, times, and methods of repayment. Some creditors may be paid in full, while others may receive partial payments or nothing at all.
Income and Payment Calculation
Your Chapter 13 payment is not based on the total amount of debt you owe, but rather on what you can afford to pay. Your disposable income, which is the amount left over after necessary expenses, will determine your monthly payment. The length of your repayment plan, either 3 years or 5 years, will depend on your income level and other factors.
Take the First Step Towards Financial Freedom
If you are considering filing for Chapter 13 bankruptcy in OKC or have questions about your debt relief options, contact us at 405-563-7888 to schedule a low-cost initial strategy session. Let us help you take the first step towards a brighter financial future.