The Concept of Chapter 13 Bankruptcy
A chapter 13 bankruptcy is a set of laws in the United States Code that have been designed to help you eliminate your debts. Essentially, it is an agreement between you and the Bankruptcy Court, as described below:
·You agree to make an affordable monthly payment for a period of 3-5 years (the monthly payment amount is based partially on your income, and/or partially on your debts)
During the 3-5 year window, you are expected to contribute your disposable income
Contributing your disposable income means updating the Court when you have significant life-changes, for example: Job changes, marriages/divorces, children, etc.
Your life changes might enable you to lower your monthly payment, or increase it, depending on the change.
In exchange for your cooperation during those few years, the court agrees to forgive your debts!
Most of my clients only pay back between 1% and 25% of their debts during the 3-5 year window. Regardless of the small amounts paid back, the court forgives the remainder! That’s the deal. That’s the benefit of Chapter 13.
Essentially, for 3-5 years you pay back only what you can afford, and the remainder is forgiven!
An exciting way to think about Chapter 13 bankruptcy is that it’s a definite plan to eliminate your debts and get a clean slate. I like to think of it as a light at the end of the tunnel.
If you don’t file a bankruptcy, you’re just spinning your wheels and staying in debt. You are not giving yourself a good chance of financial freedom. By filing bankruptcy, you are creating a certainty of being debt free after the 3-5 year window.
Very exciting to think about!!
To find out how a Chapter 13 or Chapter 7 Bankruptcy can eliminate your debts, Call/Text/Email Lucas Ruffing — 740-815-1114.
Thanks for Reading,
Lucas Ruffing
Attorney
740-815-1114
LucasRuffingLaw@gmail.com