How Long Is The Bankruptcy Process If I File Chapter 13?

Arriving at the decision to file for bankruptcy is not an easy one and most people angst over questions such as should I file for bankruptcy or how long will a Chapter 13 bankruptcy take? Many people with secure jobs and steady incomes find that they become overwhelmed by rising living expenses and mounting financial debts. These people may not even initially consider filing for bankruptcy because they may assume that because they are employed and earning an income, even a substantial income, they will not qualify for bankruptcy. Meanwhile, as they struggle to maintain payments on their bills they inch closer and closer to a home foreclosure or the repossession of necessary assets such as a vehicle. Filing for bankruptcy under Chapter 13 may provide a person in this very situation with the financial relief that they are seeking for themselves or their families. When a debtor decides to file for Chapter 13 bankruptcy, both they and their attorney will work with Trustee appointed by the Bankruptcy Court to create a manageable re-payment plan that will include allowances for living expenses and other mortgages and loans. The debtor will then be required to pay the remainder of funds to the bankruptcy trustee each month who will allocate a portion to the debtor's various creditors. The benefit of a Chapter 13 payment plan is that the debtor will not be required to make payments that exceed their monthly income and the creditors will be prohibited from making harassing phone calls or sending constant letters in an attempt to get the debtor to pay back their debt. Further, all creditors will be prevented from filing any lawsuits, making any repossessions, or garnishing any wags during the bankruptcy repayment. Once the debtor makes all of the payments for the repayment period, any remaining unsecure debts are discharged. The length of a Chapter 13 payment plans will be contingent upon a debtor's monthly income and how high the bankruptcy payments are set at. Generally, most Chapter 13 payment plans last for approximately five (5) years. Although plans may be structured for shorter periods of time. If you are having trouble dealing with your consumer debt issues and are deciding if you should file for bankruptcy or have questions about the length or complexity of the process it is imperative that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding whether you should file for bankruptcy, Chapter 7 bankruptcy, , foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.