Does Chapter 13 Bankruptcy Resolve all my Debt?
While it may not relieve all of your debt, filing for chapter 13 allows you to protect many of your assets while you figure out a repayment plan. Many people chose chapter 13 bankruptcy since it is less extreme than the other options like chapter 7.
The process can also temporarily stop a foreclosure on your home. Your cosigners will also be protected from collection. It will give you more time to weigh your options. You will often have portion of the debt you must repay. The other portion will be wiped away.
There are a few things you must have in order to qualify. You will have to demonstrate your income and be up to date on your tax filings. Otherwise, your case may be delayed. There is also a filing fee of roughly $310 to pay. You can call the Brooklyn bankruptcy lawyers for help in getting started today. They will walk you through the process and help you every step of the way.
What Debt Does Chapter 13 Discharge?
Your chapter 13 will allow you to discharge many of your debts. Unfortunately, you will not be able to get rid of obligations such as alimony and child support. Chapter 13 will use your income to help repay your debts at a reduced rate.
There are also limits to how much debt you can get rid of. Courts allow you to discharge up to $394,725 of unsecured debt such as credit card and medical debts as of 2018. The limit is $1,184,200 for secured debts such as mortgages and car loans.
It is often up to the judge to determine how much of the debt must be repaid. The courts can seem unpredictable to someone without legal expertise, so it is always a good idea to consult a bankruptcy lawyer in Brooklyn.