Chapter 13 Bankruptcy Explained: Repayment Plans and Debt Relief

 Understanding how Chapter 13 works can help make the bankruptcy process feel less up in the air. A chapter 13 bankruptcy lawyer can evaluate your finances and tell you if this type of debt relief could be right for you. Chapter 13 is generally for people with regular income who need an organized way to deal with qualifying debts but want to keep eligible property. The debtor usually then files a repayment plan with the court for approval. The plan typically lasts from three to five years . The payment required is based on income , reasonable expenses , bankruptcy rules , and the kinds of debts involved . Some obligations may need to be paid in full while qualifying unsecured debts may be treated differently under the plan. As a general rule, once a plan is approved payments are made pursuant to the terms of the plan, often through the Chapter 13 trustee. The process can shield against certain collection actions and might allow qualified homeowners time to make up their mortgage payments. Massachusetts Bankruptcy Center, you can receive assistance with the stages of a Chapter 13 case. Before you devise a repayment strategy, you need to know your income, expenses, assets and debts. Because every bankruptcy case involves different facts, a legal professional can help you understand what you might owe and what your options might be.